CarePoint Health takes away employees' accrued paid time off; unions vow fight - Health Professionals & Allied Employees

CarePoint Health takes away employees’ accrued paid time off; unions vow fight

Taken from NJ.com

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January 13, 2025

CarePoint Health, millions of dollars in debt, told employees at its three Hudson County hospitals it is taking away all of their accrued paid time off (PTO) and capping future PTO, according to an employee memo obtained by The Jersey Journal.

“After thorough consideration, we have made the difficult decision to eliminate certain benefit accruals earned prior to CarePoint and pre-petition accruals,” a letter to employees by CarePoint’s human resources department. “Additionally, we will be capping current Vacation/TOB (time off benefits), holiday, New Jersey sick, and sick accrual banks.”

Officials with CarePoint Health, which filed for bankruptcy in November after accruing more than $100 million in debt, said in a statement Monday “restoring CarePoint Health to financial stability necessarily will involve a reduction in expenses and other steps to improve the efficiency of operations.”

The statement noted there were “no changes to patient-facing medical professionals and no service disruptions related to patient care.”

CarePoint, a non-profit since 2022, operates Christ Hospital in Jersey City, Hoboken University Medical Center and Bayonne Medical Center, and has entered in a merger agreement with Hudson Regional Hospital in Secaucus.

Last week there were layoffs at all three hospitals, sources told the Journal. CarePoint officials declined to say how many employees were laid off.

The letter cited “challenging financial circumstances” that have “required (CarePoint) to carefully evaluate all aspects of our operations to ensure sustainability.” The letter did not mention the word “bankruptcy” of the court filings.

“These layoffs and benefit adjustments have impacted staff from every level including administration and executives, but they are necessary to build the foundation of a new healthcare solution for the county,” CarePoint officials said. “We want to express our gratitude for the service our colleagues provided and express our heartfelt regret that anyone had to be released.”

The healthcare system has never release salary information for its top administrators and its 990 non-profit documents, which are required by law, do not appear on GuideStar.com or ProPublica’s non-profit explorer.

CarePoint officials have long blamed a lack of state and federal aid for its financial situation.

At least two unions plan to challenge the hospital network’s decision to cancel what some longtime employees have worked years to accrue by not using their allotted vacation weeks and sick time.

“This is beyond catastrophic, like a dagger through the heart of the loyal professionals who care for these local communities,” said Doug Placa, executive director of JNESO District Council 1, IUOE-AFL-CIO, which represents approximately 300 registered nurses at Hoboken University Medical Center. “JNESO has filed a grievance in addition to filing a charge with the NLRB (for unfair labor practice). In addition, we are looking at other legal remedies. This is a more than a shameful way to treat employees ― it is shameless!”

CarePoint told employees it would honor any paid time off scheduled through the end of this week if there is proof of prior approval. But any approved time off beyond Jan. 18 will be without pay.

“CarePoint Health cannot unilaterally delete or reduce employee PTO,” said Health Professionals & Allied Employees union President Debbie White, a registered nurse. “It is against the law, and it violates our contracts. We are pursuing legal actions, and we have filed grievances, and we are preparing charges against CarePoint with the NLRB.”

The statement said two other unions representing employees at the hospital “are taking the same action.”

Bayonne Mayor Jimmy Davis, who has endorsed the merger between CarePoint Health and Hudson Regional Hospital (HRH) called the decision “not fair to the employees, particularly those who have given many years to the hospital.”

Documentation from the Chapter 11 bankruptcy filing revealed CarePoint owes its top 30 creditors $108 million, and a total list of creditors is in the thousands.

The merger is awaiting approval from the state Department of Health. Under the terms, Bayonne Medical Center would operate under HRH and its president/CEO, Dr. Nizar Kifaieh. Hoboken University Medical Center and Christ Hospital would be operated by CarePoint President/CEO Dr. Achintya Moulick.

The Journal also learned Monday that Chief Medical Officer Dr. John Rimmer is no longer with CarePoint Health. Employees were referred to Kifaieh, who has apparently already been provided with a CarePoint email address, and Dr. Caitin Jones.

Read more here.