Mount Nittany Health officials say it cost them $6.4 million dollars to bring in temporary workers during the recent hospital strike, and unionized workers say that money could have instead gone to salary increases.
SEIU Healthcare Pennsylvania, the union representing about 950 workers at Mount Nittany Medical Center, said that money could have been used to give workers an 8% raise this year, instead of the 2-3% increases previously offered.
“It’s just basically like they wasted that money," said Melissa Krouse, a registered nurse in the hospital and member of the bargaining team.
In a statement, a Mount Nittany spokesperson said salary increases are recurring expenses, while bringing in temporary workers was a one-time fixed expense.
"A wage increase affects the organization’s financial position every year going forward, including associated increases in benefit costs and other compensation-related expenses," the spokesperson said. "The fact that the organization incurred a significant cost during a strike does not mean those funds could simply be redirected to permanent wage increases."
Hospital leaders say they’re worried about the organization’s long-term financial health, especially after reportedly recording its first operating loss in more than a decade.
Krouse said she’s skeptical, and wonders if hospital leaders are responsibly investing their money.
“What I’m concerned about is the amount of property and investments they’ve made in property and buildings in the past fiscal year," Krouse said. "To me, it just seemed like a very rapid expansion. And now it makes a whole lot of sense to me, because now they can say that they actually do have a deficit.”
There are currently no bargaining meetings scheduled. Krouse said unionized workers first need to see a detailed financial report from Mount Nittany leaders. A hospital spokesperson said they’ll provide that information soon.
