SEIU Healthcare 1199NW files suit over layoffs, closures

The healthcare worker union filed the lawsuit in the Superior Court of Washington to halt Valley Medical Center’s layoffs and cuts

RENTON, WA (June 25, 2024) — SEIU Healthcare 1199NW, representing more than 2,400 nursing, pharmacy, service, and tech healthcare workers at Valley Medical Center, is taking their fight to prevent layoffs and cuts to care to the courts. On Monday, the union filed a lawsuit seeking injunctive relief and enforcement of Valley Medical Center’s Board of Trustees’ motion to pause layoffs and closures at nine different clinics.

Valley Medical Center is an acute care hospital and clinic network serving South King County, operated under Public Hospital District No. 1 and governed by a Board of Commissioners. The cuts impact: Maternal Fetal Medicine; Occupational Health Services; Kent Primary Care; Healthcare Covington North; Northwest Pavilion; Inpatient Pediatrics; Pediatric Neurology; Renton Landing Urgent Care; and NICU reduction to Level II.

“Through our union and with this legal action, healthcare workers like me are advocating for patients, for our community, and for our own coworkers who are proud to work here,” said Jake McMurray, an interventional radiology tech, in a statement.

Healthcare workers at Valley Medical in Renton during an informational picket in 2024. Photo: SEIU Healthcare 1199NW

The lawsuit stems from a decision by Valley administrators to justify layoffs and service cuts over concerns about federal cuts to Medicaid Directed Payments, despite assurances from state and federal agencies that the funds would be disbursed, per the union. Valley moved forward with cuts in March. In May, Valley announced a second round of cuts, this time impacting union-represented bedside care positions.

But the union notes that in May, Valley administrators acknowledged their stated reasoning for cuts — federal funding impacts — was inaccurate in an internal message, as funding they claimed was cancelled December 2024 was being restored for calendar year 2025.

Thanks in large part to workers’ advocacy, Valley’s Board of Commissioners and Board of Trustees unanimously passed resolutions to pause and reevaluate alternatives to the cuts in May. The Board was clear that Valley Medical Center must pause the closures and layoffs for a sufficient period of time to consider alternatives.

However, Valley CEO Jeannine Grinnell moved forward with plans to cut jobs and healthcare services anyway.

“Our South King County community deserves transparency and integrity from Valley Medical Center leadership,” said Jane Hopkins, RN, president of SEIU Healthcare 1199NW, in a statement. “As a union, we strive to maintain a respectful, honest relationship with administrators at Valley, but we will not stand by while care is cut and jobs are lost despite a resolution from the Board to pause the changes. The well-being of an entire community is at risk.”

According to financial statements and its 2024 end-of-year report filed with the Washington State Department of Health, the hospital closed fiscal year 2024 with more than $50 million in profit. The union believes that of all the area hospitals that receive federal payments, Valley appears to be the only one slashing services and jobs.

“We were assured months ago that the funding was coming. Why is Valley the only hospital resorting to cuts and closures?” asked Jordan Middleton, a Registered Nurse at Valley Medical Center, in a statement. “Valley’s own mission calls for ‘caring for our community like family,’ but cuts to care would be devastating to the health of our South King County community. Our patients deserve quality care, not reduced access to care.”

SEIU Healthcare 1199NW healthcare workers reviewed communications between the Center for Medicare & Medicaid Services, the Washington Health Care Authority, and state legislators, finding ample evidence to indicate that Valley’s leadership received information about the forthcoming payments multiple times, but decided to move forward with closing clinics and cutting patient services despite being notified that their funding was never ‘cancelled’ and was fully expected to arrive. The union reports that State Representative Nicole Macri, a legislative leader on healthcare policy and access,  confirmed the existence of these exchanges.

Ultimately, healthcare workers are calling for transparency, accountability, and a commitment to good-faith decision-making. They urge Valley leadership to avoid further cuts and to treat staffing reductions as a last resort.

“Valley leadership needs to do better,” said interventional radiology tech McMurray. “The decline in transparency and trustworthiness coming from the top over the past few years is alarming. With these cuts, Valley is moving in the wrong direction. We’ll keep fighting to protect care in South King County.”