SEIU intends to strike at Essentia's Deer River hospital, nursing home

DEER RIVER — Essentia Health reported it received a 10-day strike notice on behalf of 70 union employees at the hospital and nursing home in Deer River.

In a news release, the health care provider says the Service Employees International Union intends for a work stoppage to begin 7 a.m. Monday, Nov. 4, and last through 7 a.m. Saturday, Nov. 9. The employees fill a variety of roles in both facilities, according to Essentia.

SEIU and Essentia are currently negotiating a new three-year contract after the previous one expired Sept. 30. Essentia describes the strike notice as "unusually early in the process, coming after two negotiating sessions and with mediation scheduled next month."

According to Essentia, the SEIU is seeking a 55% increase in wages over three years, which the provider describes as not financially sustainable in today’s health care environment. The work stoppage is not guaranteed, and Essentia stated it intends to continue negotiating in good faith.

In a news release, the union said the two sides remain distant on issues like wages, more paid time off and shift bonuses, and ensuring hospital workers get the same holiday pay as nursing home workers.

Janelle Denny is a sterile processing worker and member of the SEIU bargaining team who has been at Deer River Essentia Health for over five years.

"We want to be here and do good work for our patients and community, but we need fair pay to respect our work. Without our jobs others can't do their jobs and our patients deserve the best care possible,” she stated. “It is hard on us having to get new people on the team so often because of turnover.”

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Essentia Health

Denny said in the release that Essentia is countering with a wage increase of 33 cents and cuts in longevity pay that would punish long-term employees.

“How can they justify a $0.33 wage increase, especially when higher ups have gotten big bonuses?” the statement read. “We think every job is as important as the next and we all should get fair pay. We want and need workers who want and can stay here for many years!”

If the strike commences, emergency services, surgical care, outpatient clinic care and long-term care would remain available. But some aspects of hospital inpatient services would be suspended, meaning some patients would be transferred to other Essentia facilities and new patients would not be accepted for hospital admission. Essentia has provided inpatient care in Deer River since 2012.

"This is not a decision we make lightly as it affects health care in a community we’re honored to serve," the release stated.

Inadequate Medicare and Medicaid reimbursements cover about 70% of the cost of care, Essentia Health reported, leaving providers struggling to make up the difference.

In a recent interview concerning Fosston city officials' dispute with Essentia Health over the management of its hospital there, Dr. Stefanie Gefroh, Essentia Health’s interim president for the west market, pointed to these reimbursements as a major factor in the financial picture of rural health care.

“It's important to remember that this isn't a unique situation to Fosston. As an example, two-thirds of our rural facilities across the country have a negative margin, so this is very broad brush,” Gefroh said.

Essentia reported that in Deer River, nearly three-quarters of payments come from government programs.

"These payments leave a significant shortfall that nonprofit hospitals like Essentia must account for by either shifting costs or ending services that are not financially viable," the release stated. "Both of these options would restrict access to rural health care.

"Increases in compensation far above inflation or other measures make it even more challenging to sustain access to care, particularly for rural communities."

A mediation session is scheduled for Nov. 13, and the provider says it is urging the union to focus on making progress instead of going on strike.

In 2022, Essentia and SEIU averted a strike after the union sought wage and benefit increases for frontline staff during the COVID-19 pandemic.