Union Files Grievance On Kaiser Lawyer
In its second major action involving Oakland-based Kaiser Permanente in a month, the National Union of Healthcare Workers has filed a complaint with the California Fair Political Practices Commission, claiming Kaiser's health plan hired an attorney away from a regulatory agency to blunt an ongoing investigation into its business practices.
Marcy Gallagher had been a prominent investigator and attorney in the enforcement division of the California Department of Managed Health Care for years. She had headed up a 2007 DMHC investigation of Kaiser that led to a $3 million fine connected to its star-crossed attempt at opening a kidney transplant program and its impact on patient care.
But according to the NUHW, Gallagher was hired by Kaiser in July 2012 while in the midst of another investigation of its health plan in how it managed access to mental health services. The manner of Gallagher's move from a governmental entity to the private sector constitutes a violation of the California’s Political Reform Act, which regulates “switching sides by state officials and “influencing prospective employment," according to the NUHW.
“At Kaiser, Ms. Gallagher reportedly trained Kaiser officials on how to answer questions posed by DMHC’s investigators,” read a statement issued by the NUHW. “In short, Ms. Gallagher went from directing the DMHC’s investigation of Kaiser to helping Kaiser fend off the very investigation that she spearheaded.”
Gallagher reported to the FPPC that she left government service on July 23, 2012. A Kaiser organizational chart indicated Gallagher is a practice leader with its regulatory response business unit.
Gallagher, a resident of the Sacramento suburb of Folsom, declined to comment when reached on Wednesday. Spokespersons with DMHC and Kaiser said they would not comment pending a review of the complaint.
The NUHW, which represents about 5,000 Kaiser employees, including psychologists, social workers and opticians, has been pressuring the giant healthcare organization since it lost an election last spring to represent about 45,000 employees.
The NUHW was formed in 2009 by the former leadership of the United Healthcare Workers West, an affiliate of the Service Employees International Union, but has been challenged in growing its membership. It represents about 10,000 healthcare workers, all in California.
Last month, NUHW filed suit against the Covered California health benefits exchange, claiming its decision to allow Kaiser to sell coverage violated its legal duty to pick an insurer in good standing. The union pointed to a $4 million fine the DMHC levied against Kaiser earlier this year for deficiencies in the mental health services it provided enrollees.
NUHW spokesman John Borsos denied that the Covered California lawsuit and the FPPC complaint are being used as leverage against Kaiser in labor negotiations.
“Kaiser abiding by the law doesn't have anything to do with a labor dispute,” Borsos said.
