OAKLAND, Calif.--(BUSINESS WIRE)--Dear CYH Investor:
On the Q4 2015 CYH investor call, CFO W. Larry Cash disclosed that CYH “experienced a higher estimate than anticipated actuarial calculation of the malpractice insurance reserves of approximately $25M”1 This miscalculation led to higher operating expenses and lower earnings for the year.2 The higher than expected cost relating to malpractice is not surprising to nurses at CYH facilities across the country.
Nurses across the county have been sounding the alarm about inadequate staffing levels and other unsafe conditions in CYH hospitals for years, but their concerns have gone unaddressed. In fact, rather than addressing these concerns, the company’s recent annual report underlines the CYH’s attitude about safe staffing, stating that “State-mandated nurse-staffing ratios could significantly affect labor costs, and have an adverse impact on revenues if we are required to limit patient admissions in order to meet the required ratios.”3
Understaffing of nurses at hospitals puts patients’ health at risk4 and could open CYH to additional malpractice liabilities. We urge you to call on the company to do the right thing and protect patients by better staffing and equipping nurses in CYH hospitals.
National Nurses United and its affiliates represent 185,000 nurses throughout the United States.
1 CYH Q4 2015 Earnings Call
2 CYH Q4 2015 Earnings Call PowerPoint
3 CYH 2015 Annual Report
4 Aiken, Linda H., et al. "Implications of the California nurse staffing mandate for other states." Health services research 45.4 (2010): 904-921.