PA nursing home workers secure $120M union contracts

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• 2,500+ union workers ratify first contracts at 27 PA facilities

• $120 million committed to wage increases over two years

• Combats Trump’s $1 trillion in Medicaid cuts

More than 2,500 union nursing home workers and providers reached the first collective bargaining agreements as part of the new labor-industry partnership between the Pennsylvania Health Care Association (PHCA) and SEIU Healthcare PA.

The inaugural two-year union contracts raise wages, improve training, and address workforce shortages across 27 PA facilities. A majority of 90% SEIU Healthcare PA union members at the 27 homes voted to ratify the contract.

Saber Healthcare, WeCare, Kadima Healthcare, and Focus agreed to invest approximately $120 million in wage increases over the next two years to address challenges in workforce retention and recruitment.

“Our partnership is built on the foundation of collective advocacy,” Zach Shamberg, president and CEO of the Pennsylvania Health Care Association, said in a statement. “What benefits providers ultimately supports workers, and vice-versa. We cannot afford to work individually or in ‘silos’ anymore, and that’s why we’re proud to team up on behalf of long-term care in Pennsylvania.

“But it can’t just be stakeholders – we need the support of our elected officials. And as this year’s state budget process continues, we’re calling on lawmakers to support our long-term care continuum.”

The collective bargaining agreements and joint funding advocacy follow the Trump Administration’s $1 trillion in Medicaid cuts. Since 2021, Pennsylvania has seen 30 nursing homes close their doors, and more facilities are expected to close due to recent cuts. One-third of Pennsylvanians will be 65 years and older by 2030, but the commonwealth does not have the skilled caregivers to meet its growing need.

The partnership agreement covers union workers across Pennsylvania who care for thousands of seniors and residents.

The labor-industry partnership was created to address this crisis through accountable funding advocacy, growth, and collective bargaining. PHCA and SEIU Healthcare PA are calling for a ‘fix’ to the outdated Budget Adjustment Factor, which places a ‘ceiling’ on nursing home reimbursements. If enacted, this would infuse approximately $140 million new dollars into the long-term care system for sustainability, workforce investment, and care.

PHCA is a statewide advocacy organization for Pennsylvania’s most vulnerable residents and their providers of care. Its members include for-profit and not-for-profit skilled nursing facilities, assisted living communities and personal care homes. Together, they represent more than 400 long-term care and senior service providers and more than 50,000 elderly and disabled individuals.