Public Employee Press

Contracting IN beats contracting out
Private deals versus patient care at HHC

At an Oct. 19 Health and Hospitals Corp. Executive Board hearing, union leaders showed that the agency's latest privatization scheme would hurt patient care and pointed out the failures of the agency's previous contracting-out schemes. But the board voted to go ahead with the nine-year deal - price unspecified - to hand over housekeeping management at city hospitals to Crothall Healthcare Inc.

"HHC is selling off parts of the public hospital system and relinquishing control to the for-profit sector," said DC 37 Associate Director Henry Garrido, who cautioned the board about contracting waste. "We oppose this contract because we believe in delivering quality care for the patients," he said. "Crothall says our members will not lose jobs, but in the end this will only hurt patients."

Local 420 President Carmen Charles charged that HHC's "sweeping wave of privatization" wastes money and damages services. She cited the deal in which HHC closed its laundry in August and contracted out laundry services to Sodexo Inc. But "laundry workers redeployed to housekeeping were ordered to distribute laundry - work HHC is paying Sodexo for."

Crothall claimed the deal would save $180 million by reducing managerial costs, but Garrido said any savings would come through cutting HHC staff to dangerous levels through layoffs and hiring freezes.

The contract fails to base annual renewals on performance, as DC 37 requested, but it promises Crothall yearly bonuses totaling $1.6 million just for meeting its targets.

"Privatizing public services is not the answer to your problems," Charles told the HHC board, urging them to include the union as "partners in the decision-making process." The high ratings the city's public hospitals have achieved recently are due to the work of union members, not outside contractors.

DC 37 and a coalition of health-care advocates are fighting privatization at HHC through the HEAT campaign for better community-based health care. The union lobbies the City Council and state Legislature in meetings and through letters and phone banking, and urges members and residents to speak at HHC's annual meetings, which start Nov. 28 at Elmhurst Hospital.

—Diane S. Williams