Healthcare News & Insights

Hospitals cough up millions to settle alleged nursing pay conspiracy

NurseGossip

Albany Medical Center will shell out $4.5 million to settle accusations that it kept nurses’ pay artificially low in a “wage-fixing conspiracy.”

According to a federal lawsuit, AMC and five other hospitals shared detailed info on nurse’s compensation and agreed not to compete for nursing staff for a period of four years. According to the charges, hourly wages at the four hospitals differed by less than $1 an hour. Nearly 4,100 nurses are believed to have been affected.

The charges were part of a federal class action lawsuit against six New York state hospitals: Albany Medical Center, St. Peter’s Hospital, Albany Memorial Hospital, all in Albany; St. Mary’s Hospital and Samaritan Hospital of Troy; and Ellis Hospital, Schenectady. All the hospitals except Ellis have now settled.

The $4.5 million settlement is 2% of the total compensation AMC paid to members of the class action suit during the relevant time period. The funds are being held in escrow, for later distribution to the nurses.

To date, the five hospitals that have paid out more than $9 million in settlements. All of the hospitals involved in the suit deny the allegations of a conspiracy.

Editor’s note: An earlier version of this story incorrectly identified one of the hospitals in the settlement.

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