News & Publications

Assessing Labor Issues in Deals with Health Care Facilities


Michael F. McGahan, a Member of the Firm in the Employment, Labor, and Workforce Management practice, and Jonathan K. Hoerner, an Associate in the Health Care and Life Sciences practice, authored an article in Law360 titled “Assessing Labor Issues in Deals with Health Care Facilities.” (Read the full version – subscription required.)

Following is an excerpt:

The time before and during a change of ownership or corporate structure can be a period of great uncertainty for employees of a health care entity. Employees may worry not only about whether their compensation, benefits and work environment will change but also about whether they will still have a job once the change of ownership is completed. This period of uncertainty can be ripe for union organizing activities in a nonunion workforce, or cause interest in an expansion of union representation where part of a workforce is already represented. There have been reports of employees organizing shortly after completed transactions involving health care entities. Further, the ruling by the National Labor Relations Board in Specialty Healthcare … allowing union organization in “micro units” in health care institutions (other than acute care hospitals) will make organizing easier for unions.

Mr. McGahan and Mr. Hoerner also commented on this topic in Take 5: Five Challenges Facing Employers in the Health Care Industry, an Epstein Becker Green client alert.