SACRAMENTO – Industry leaders are speaking out against a proposal that would reshape workers’ compensation benefits for hospital employees throughout the state. Opponents of the bill are fearful of both the rising costs and lawsuits that it would bring.
The proposed bill – SB 567, authored by Sen. Anna Marie Caballero (D-Salinas) – would increase workers’ compensation costs for public and private hospitals by presuming certain diseases and injuries are caused by the workplace, according to the CalChamber. The Chamber also noted that the fear is that lawsuits against hospitals would increase under this bill.
The California Hospital Association (CHA) is also notably opposing the bill, believing that it would “extend presumptions into the private sector for the first time and increase costs at a time when hospitals are laser-focused on helping make care more affordable."
“California’s hospitals remain committed to working with their employees and policymakers to provide a safe working environment,” wrote Kathryn Austin Scott, CHA senior vice president, to Jerry Hill, chair, Senate Labor, Public Employment and Retirement Committee, in a letter formally opposing the bill. “SB 567, would, in fact, create financial and operational burdens that jeopardize both patients and health care workers.”
The CHA additionally noted that the proposed bill lacks any proof that it will in fact benefit hospital employees with no proven background.
“Hospitals share the goal of protecting injured or ill employees,” wrote Scott. “However, by extending presumptions into the private sector for the first time, this bill would increase costs without any evidence that it would improve employee safety. At a time when hospitals are laser-focused on helping make care more affordable, this is not the right approach.”
SB 567 failed to move out of the Senate Labor, Public Employment and Retirement Committee last year, but was granted reconsideration. Amendments to the bill were passed on Jan. 8 but failed to address the concerns that the nearly 100 listed opponents have raised.