Geisinger Evangelical Healthcare Settlement
- Danville, Pennsylvania-based Geisinger and Lewisburg, Pennsylvania-based Evangelical Community Hospital (now WellSpan Evangelical Community Hospital) have agreed to settlements resolving allegations of a secret "no-poach" agreement...
- The total settlement amount is $28.5 million, with Geisinger agreeing to pay $19 million and WellSpan Evangelical Community Hospital contributing $9.5 million, as detailed in court documents obtained...
- The lawsuit alleged that Geisinger and Evangelical Community Hospital entered into an unlawful agreement not to solicit or hire each other's employees.
“`html
Geisinger and WellSpan Evangelical Reach $28.5 Million Settlement in no-Poach Agreement Case
What Happened?
Danville, Pennsylvania-based Geisinger and Lewisburg, Pennsylvania-based Evangelical Community Hospital (now WellSpan Evangelical Community Hospital) have agreed to settlements resolving allegations of a secret “no-poach” agreement designed to suppress healthcare wages. The settlements, filed with the U.S. District Court for the Middle District of Pennsylvania, require court approval.
The total settlement amount is $28.5 million, with Geisinger agreeing to pay $19 million and WellSpan Evangelical Community Hospital contributing $9.5 million, as detailed in court documents obtained by Becker’s Hospital Review on October 6, 2023.
The Allegations and Timeline
The lawsuit alleged that Geisinger and Evangelical Community Hospital entered into an unlawful agreement not to solicit or hire each other’s employees. This practice, known as a “no-poach” agreement, restricts competition for labor and can artificially lower wages. The alleged agreement covered employees in Union, Snyder, Northumberland, Montour, Lycoming, and Columbia counties in Pennsylvania.
The period covered by the settlements spans from January 1, 2014, to August 5, 2020. The initial lawsuit sought to challenge the legality of these agreements,arguing they violated antitrust laws.
Who is Affected?
Approximately 12,000 healthcare workers who were employed at geisinger or Evangelical Community Hospital facilities during the specified period (January 1, 2014 – August 5, 2020) are eligible to receive a share of the settlement funds.
Each eligible worker is expected to receive at least $250, with the average payout estimated at $1,500, according to a court document filed on October 3, 2023, as reported by PennLive on october 6, 2023.
settlement Details and Next Steps
The settlements include a full release and dismissal of all claims against both Geisinger and WellSpan Evangelical Community Hospital. The proposed settlements must be approved by judge Matthew W. brann of the U.S. District Court for the Middle district of Pennsylvania.
following court approval, a process will be established to distribute the settlement funds to eligible healthcare workers. Details regarding the claims process will likely be announced through court notices and potentially through the hospitals themselves.