May 7, 2025
As strike deadline looms, CT nursing homes face added costs
By Keith M. Phaneuf, CT Mirror
Though Connecticut’s largest health care workers’ union has a May 19 strike deadline at 51 nursing homes, facilities already have incurred costs to prepare for a possible work stoppage, the head of a major industry association said Tuesday.
And if no deal is reached by May 12 between SEIU 1199NE, nursing homes and state government — which funds much of the industry — facilities could face costs “in the millions” of dollars, even if a strike is averted, said Matthew Barrett, president and CEO of the Connecticut Association of Health Care Facilities.
Many homes already have paid deposits to secure replacement workers in the event regular staff strike, said Barrett, whose organization represents about three-quarters of the approximately 200 nursing homes statewide.
And if no deal has been reached by next Monday, one week prior to the planned work stoppage, there is “a significant escalation in the required payments.”
Facilities must begin committing funding for housing, travel, food and other costs for replacement workers, some of which is not refundable even if an agreement is reached before May 19, or if the strike is limited to a few days, he said.
State law requires nursing homes to have detailed plans in place in advance of any work stoppage to ensure proper patient care. Similarly, the union must notify the industry at least 10 days in advance of any potential strike. SEIU 1199NE gave that notice on May 1.
About 5,700 union members are working at these 51 homes under expired contracts that pay employees about $18 to $22 per hour, said SEIU 1199NE President Rob Baril. The union, he added, wants to boost starting pay to $25 per hour and, over several years, elevate most employees’ wages to about $30 per hour.
Though wage and benefit negotiations technically are between private sector nursing homes and their staff, the state often plays a role in resolving labor-management disputes in this industry.
That’s because, on average, more than 80% of nursing home revenue involves patients whose care is covered by federal and state Medicaid dollars.
And both Baril and industry leaders say Connecticut nursing homes suffer from decades of austere state funding.
The union estimates it would require an extra $550 million in Medicaid payments over the next two fiscal years combined, an annual average of $275 million, to fund the improved wages and benefits that workers are seeking.
About 50% of Connecticut’s Medicaid expenses in most areas currently are covered through federal reimbursement, which would make the effective annual cost to the state about $137.5 million.
Meanwhile, Gov. Ned Lamont and the General Assembly are struggling to develop a new state budget that complies with the constitutional cap that keeps most spending growth in line with household income and inflation.
At the same time, state leaders are bracing for huge cuts in federal aid. Congress has set a goal of achieving cuts to Medicaid and other programs worth $880 billion over the next decade. Lamont’s administration has modeled potential cuts, based on various proposals on Capitol Hill, that could cost Connecticut anywhere from $186 million to $880 million per year.
Lamont’s budget spokesman, Chris Collibee, has said a recent Department of Social Services analysis of Medicaid rates shows Connecticut’s funding levels compare favorably with states of comparable size and income levels.
Most Recent
Most Recent
0 Comments