Press Release

Public Hearings on Future of Four Bay Area Daughters of Charity Hospitals Start Wednesday

Nurses, community to rally and testify for approval of sale to save critically needed, essential care at O’Connor

SAN JOSE—Registered nurses and community organizations are turning out for a third day of rallies and public hearings to support the proposed sale of six Daughters of Charity hospitals to Prime Healthcare, the California Nurses Association/National Nurses United (CNA/NNU) announced today.

The CNA/NNU represents 1,800 nurses at four of the six hospitals and is part of a broad coalition that includes environmental, community and civil rights groups that endorse the sale to avert a potentially catastrophic health care crisis in two of California’s largest metropolitan areas.

Hundreds of registered nurses turned out for public hearings Tuesday and Wednesday at St. Francis Medical Center at St. Vincent's Medical Center in southern California.

"As a nurse I am very proud that a quarter of all infants in San Jose are born at O'Connor Hospital,” said Debbie O'Neill, an RN who has worked in pediatrics and maternity at the hospital. “It is absolutely essential that these babies and their families continue to receive the vital services O'Connor provides. This is also quite important to me because my own family has received care from O'Connor for the past 50 years," said O'Neill who will testify at the hearing Wednesday.   

Prime is the only viable offer that would avert closure, and  stave off a deepening public health crisis.  With the Daughters of Charity Health System losing nearly $10 million a month, Prime has committed to keep all six hospitals open for a minimum of five years, protect most of the existing 7600 jobs, pay off nearly $750 million in tax-exempt bonds, pension and other debts, and commit an additional $150 million to hospital improvements.

O’Connor’s 358 beds, for example, are almost indispensable to San Jose’s population of roughly one million. More than half of all visitors to the emergency room identified as Latino, and nearly half relied on Medi-Cal for payment. Moreover, O’Connor accounted for one quarter of the 3,200 babies delivered in San Jose in 2014.

Daughters of Charity Hospitals are operated as non-profits, the sale of which requires the approval of the Attorney General, who must determine if the transaction is in the public interest.

When DCHS first learned of the effort to sale in 2014, nurses came up with a set of guidelines designed to protect the hospitals, patients, and the community. These include: (1) operate all DCHS hospitals as acute care facilities, (2) maintain all existing hospital services, (3) give reasonable assurances against a short-term bankruptcy, (4) keep all promises made to retirees, and (5) honor caregivers' right to collectively bargain for their mutual aid and patient protection.

Of interested buyers, only Prime satisfied these principles, although nurses also considered a proposal from a Wall Street private equity firm, Blue Wolf Capital. Blue Wolf, which has a reputation for buying, gutting and reselling businesses for quick profit, failed to satisfy the nurses’ requirements.  

The remaining four will take place in the Bay Area in each of the communities served by one of the D.O.C hospitals located in San Jose, Gilroy, Moss Beach and Daly City

January 7-9 Bay Area Hearing and Rally Schedule

  • Thursday, Jan. 8, —St. Louise Regional Hospital—Rally at 9:00 a.m., Hearing at 10:00 a.m.
    Gilroy City Hall, Council Chambers 7351 Rosanna St., Gilroy, CA 95020
  • Friday, Jan. 9, Seton Medical Center Coastside—NO RALLY-Hearing—9:00 a.m. Seton
    Medical Center-Coastside, 600 Marine Blvd., Moss Beach, CA 94038
  • Friday, Jan 9, Seton Medical Center—Rally at Noon, Hearing at 1:00 p.m.
    Seton Medical Center, Merced Room, 145 Lake Merced Blvd., Daly City, CA 94015.