Dive Brief:
- As ACOs and other entities connect hospitals in new partnerships, they could face some labor relations strain.
- One thing that could happen is that other hospitals on the ACO team might put pressure on groups to address problems with underperforming doctors; if someone gets fired, the employee could sue the intervening hospital for interference with contract, or even both the employier hospital and the intervening one.
- Building efficient ACO structures can also disrupt relationships with unions; for example, reorganization of tasks may transfer bargaining unit work to another facility, which could lead to hospital-union disputes that can result in unfair labor practice charges.
Dive Insiight:
Forging a new ACO may be a smart move for hospitals and health systems, but it also comes with new labor issues that could drain some of the value from the relationship. It seems clear that labor relations and HR people should be involved directly in the process as ACOs form up, to avoid needless unrest, loss of trust among employees and potentially, legal action. If your ACO takes these issues on early in the game, you'll be glad you did.