Two PA Hospitals Agree to $28.5 Million Settlement for Illegal "No Poach" Agreement

Geisinger System Services and Evangelical Community Hospital, both major health care facilities in central Pennsylvania, have agreed to settle a class action by approximately 12,000 health care workers who alleged that the hospitals illegally agreed not to poach each other’s employees. The effect of the no poach agreement was to suppress the wages of the health care workers, and to limit their ability to find other jobs in the area should they wish to leave, or if their employment was involuntarily terminated. The settlement is not yet final as it is still pending final court approval by the U.S. District Court for the Middle District of Pennsylvania.

If the settlement is certified, Geisinger will pay $19 million, and Evangelical Community Hospital will pay $9.5 million. The settlement class includes all those who were employed as healthcare workers at Geisinger's or Evangelical's facilities from Jan. 1, 2014, through Aug. 5, 2020, in the Pennsylvania counties of Union, Snyder, Northumberland, Montour, Lycoming and Columbia. 

"Healthcare workers" include all physicians, nurses, advanced practitioners and medical support staff, according to the settlement. The deal also covers "healthcare professionals" which refers to health technicians, therapists, healthcare managers and other professionals who contribute to the healthcare system in many capacities.

With no poach agreements, employees may have no idea that their employer has entered into such an agreement with other prospective employers. This case highlights increased legal scrutiny of hiring practices that may limit job mobility and wage competition in healthcare - a practice that no only severely hurts the health care workers, but also patients.