Nurse Strike Cost Allina Nearly $150M
Strikes by the nurses union cost Allina Health $149.3 million in 2016, according to the organization’s year-end financial report.
That number is significantly higher than original cost estimates made in November of $105 million. Thousands of nurses twice walked off the job during labor negotiations. Allina reportedly hired 1,200 replacements to keep its hospitals open.
Hospitals affected included Abbott Northwestern, Phillips Eyes Institute, United Hospital, Mercy Hospital and Unity Hospital.
The first strike by the Minnesota Nurses Association took place during a seven-day period in June. It was followed by an open-ended strike that stretched for 37 days from early September to mid October. The two sides disagreements primarily revolved around health care benefits. Nurses eventually agreed to move from their union health benefits to Allina’s corporate plan in exchange for concessions.
The costs more than wiped out the entirety of Allina’s operating income, which totaled $119.2 million. But the nonprofit health care provider will still able to turn a $46.9 million profit due to strong investment income.