Nurses win 15 million settlement over hospital training debt scheme Courthouse News Service

pUpdates to our Terms of UseppWe are updating our Terms of Use Please carefully review the updated Terms before proceeding to our websiteppWednesday April 23 2025ppAn investigation found that HCA Healthcare required nurses to repay thousands in training costs if they did not commit to working for HCA for two yearsppSAN FRANCISCO CN California Attorney General Rob Bonta announced Thursday that nurses employed by the largest hospital system in the country will no longer be required to pay back thousands in training costs if they leave their positions before completing a twoyear service periodppThe policy change for HCA Healthcare which operates more than 180 hospitals in 20 states is part of a more than 15 million settlement with the health care company resolving claims arising from an investigation launched in partnership with the attorneys general of Colorado and Nevada and the Biden administrations Consumer Financial Protection BureauppThe investigation found that HCA violated California employment and consumer protection laws as well as the federal consumer financial protection laws by requiring hired nurses to sign a training repayment agreement provision as part of their employment contractppThis is a form of employerdriven debt a concerning practice across industries where workers are handed bills simply for deciding to leave their jobs Bonta said in a press conference announcing the settlementppThats not how we treat workers In California under state law employers cant saddle their workers with debt just because they choose to move on he addedppAccording to the attorney generals office newly hired nurses at HCA hospitals were required to complete the Specialty Training Apprenticeship for Registered Nurses Residency Program a companyrun training program and sign the agreement provisionppThe provision required nurses to repay a portion of the training cost an average of 10000 if they did not commit to working for HCA for two years If a nurse decided to leave HCA or was fired before the end of the two years their loan was sent to collectionsppMonique Hernandez a nurse at Riverside Community Hospital and vice president of SEIU 121RN said that HCAs business model was focused on cutting corners to squeeze as much profit as possibleppThe StaRN program which trapped new nurses under unfair and illegal debt obligation was another example of HCAs willingness to sacrifice nurses wellbeing in the quest for profit she saidppA survey by the California Nurses Association found that an estimated 40 of new nurses across the country have had to sign the provision with a onethird saying that they felt restrained from complaining about unsafe staffing or other unsafe working conditions according to John Pasha a cardiovascular intensive care nurse and member of the California Nurses AssociationppTRAPs allowed employers to use the threat of financial ruin to prevent nurses from acting collectively to improve hospital working conditions for ourselves and our patients he said In short these stayforpay contracts handcuff us to employers that exploit our calling as nurses to care for othersppAlong with being prohibited from enforcing the provision and collecting its debt HCA will also have to pay around 83000 in restitution to California nurses who already made payments on their debt and more than 1 million in penalties to the stateppIn total HCA will pay 29 million in penalties between settlements in California Colorado and NevadappThis is real relief for workers and a serious warning to other employers If youre using illegal contracts to trap your workers we will come for you Bonta saidppThe attorney generals office sued HCA on July 24 2025 in Santa Clara Superior Court and is planning to file the proposed judgment as part of its settlement with HCA shortly according to the office The proposed judgment will then be subject to approval by the courtppSign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials major litigation and hot cases and rulings in courthouses around the US and the worldp