Essentia Health-Deer River receives strike notice from SEIU

Upon receiving a 10-day strike notice from the Service Employees International Union (SEIU), Essentia Health is alerting residents in Deer River and the surrounding area about the potential impact on patient care. The SEIU notified Essentia that it intends to initiate a work stoppage from 7 a.m. Monday, Nov. 4, to 7 a.m. Saturday, Nov. 9, at our hospital and nursing home facilities in Deer River.

The SEIU unit has about 70 valued team members filling a variety of roles in the hospital and nursing home.

Essentia and the SEIU are negotiating a new three-year contract after the previous one expired Sept. 30. The strike notice comes unusually early in the bargaining process, after only two negotiating sessions and with mediation scheduled for next month. We feel the strike notice is premature, and we should instead focus on making progress at the bargaining table.

The SEIU’s wage demand of a 55% increase over three years is not financially sustainable in today’s health care environment. Financial constraints are especially pronounced in rural communities, where there is a greater percentage of patients with government insurance such as Medicare and Medicaid. On average, these programs currently reimburse far less than the cost of care — about 70% — leaving providers like Essentia struggling to make up the difference. This is why hospitals and health systems continue to advocate for increased Medicare and Medicaid reimbursement rates to levels that ensure the state’s most vulnerable communities sustain access to comprehensive health care.

In Deer River, nearly three-quarters of our payments come from government programs. These payments leave a significant shortfall that nonprofit hospitals like Essentia must account for by either shifting costs or ending services that are not financially viable. Both of these options would restrict access to rural health care. Increases in compensation far above inflation or other measures make it even more challenging to sustain access to care, particularly for rural communities.

Essentia provides our valued Deer River colleagues competitive pay and benefits, which include paid time off, holidays, health and dental insurance, retirement with 401K matching and more. At Essentia, we are committed to reaching an amicable agreement that supports good local jobs while preserving access to high-quality health care in Deer River.

While this notification from the SEIU authorizes the union to strike if it chooses, it does not mean a work stoppage is guaranteed. Essentia will continue to negotiate in good faith toward a mutually beneficial agreement, and we appreciate our colleagues’ willingness to continue prioritizing patient care above all else.

In the event of a work stoppage, emergency services, surgical care, outpatient clinic care and long-term care at Essentia Health-Homestead would remain available. However, aspects of hospital inpatient services would be temporarily suspended during a work stoppage. That would involve transferring some current hospital patients to other Essentia facilities and not accepting new patients for hospital admission. Essentia has provided inpatient care in Deer River since 2012. This is not a decision we make lightly as it affects health care in a community we’re honored to serve.

Given the negotiation session with a federal mediator already scheduled for Nov. 13, we are urging the SEIU bargaining team to focus on making progress with us during bargaining rather than going out on strike. We believe focusing on solutions at the bargaining table is the best approach for everyone involved, including our patients and the community.

At Essentia, we deeply value the relationships we have with more than 50 organized bargaining units representing our colleagues. We’ve had 15 labor agreements approved by Essentia union employees so far this year.