What's Happening?
Home health and hospice workers in Everett are expressing concerns about the quality of patient care following a management change due to a joint venture between Providence Swedish and Compassus, a private equity-backed company. The venture, which began
in May 2025, has led to significant staff turnover, with over 60 employees leaving the Everett location. Union members cite unsustainable patient load requirements and fear of losing their licenses as reasons for the departures. Complaints have been filed with federal and state agencies regarding inadequate patient care, wage theft, and unsafe practices. The Washington State Investment Board, which invested $450 million into the private equity fund financing the joint venture, is being urged by union members to use its influence to address these issues.
Why It's Important?
The situation highlights the growing trend of private equity involvement in healthcare, raising concerns about the potential impact on patient care quality. As private equity firms increasingly partner with nonprofits, questions arise about financial transparency and the prioritization of profit over patient care. The involvement of the Washington State Investment Board underscores the legal and reputational risks associated with such investments. The broader implications include potential changes in healthcare delivery models and increased scrutiny from lawmakers and regulatory bodies. The ongoing negotiations for a fair contract between SEIU 1199NW and Compassus could set precedents for labor relations in similar ventures.
What's Next?
The Washington State Investment Board is in discussions with TowerBrook and Compassus regarding the concerns raised by the union. SEIU 1199NW is negotiating its first contract with Compassus, with members seeking protections for workers and addressing employee complaints. Legislative efforts at the state and federal levels aim to increase transparency and accountability in private equity-owned healthcare entities. The outcome of these negotiations and legislative actions could influence future private equity investments in healthcare and the regulatory environment surrounding them.
