The Bronx Health Plan, 810 (1998)

National Labor Relations Board

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The Bronx Health Plan, 810 (1998)

DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD

The Bronx Health Plan and 1199, National Health and Human Service Employees Union. Case 2- CA-26995

August 27, 1998

DECISION AND ORDER

BY CHAIRMAN GOULD AND MEMBERS LIEBMAN

AND HURTGEN

On March 2, 1995, Administrative Law Judge Raymond P. Green issued the attached decision. The General Counsel and the Union filed exceptions and supporting briefs. The Respondent filed an answering brief in opposition to the exceptions.

The National Labor Relations Board has delegated its authority in this proceeding to a three-member panel.

The Board has considered the decision and the record in light of the exceptions and briefs and has decided to affirm the judge's rulings, findings,1 and conclusions only to the extent consistent with this Decision and Order.2

The primary issue in this case is whether the Respondent is a successor employer to Montefiore Hospital and if so, whether the Respondent violated Section 8(a)(5) and (1) of the Act by refusing to recognize and bargain with the Union and by unilaterally setting different terms and conditions of employment for its employees.

Background

The undisputed facts are as follows.

The Respondent is a not-for-profit corporation that provides a prepaid Health Services Plan to Medicaid recipients in lieu of Medicaid. The Respondent's clients are provided a list of approved health care providers and facilities from which to choose a physician or clinic.

The initial planning and developmental stages for what became "The Bronx Health Plan" (TBHP, Inc.) were funded by a grant issued to Montefiore by a private foundation. Montefiore hired a small staff to perform the grant supported work. In February 1986, the Respondent filed its articles of incorporation with the State of New York. However, it did not begin providing the health care service plan to clients until February 1987.

The Respondent began operations with no employees. Montefiore provided all managerial and other staff. On March 27, 1989, the Respondent's arrangement with Montefiore was memorialized in a management services agreement. This agreement expressly stated that Montefiore, on a fee-for-services basis, would provide the Respondent with all its employees, including the managerial employees, necessary to perform all the work required by the Respondent. According to the contract's terms, the

Respondent would, within 5 years, become a regular employer with its own employees.

1 We agree with the judge that the Respondent and Montefiore are not joint employers of the unit employees for the reasons set forth in his decision.

2 We shall modify the judge's recommended Order in accordance with our decision in Indian Hills Care Center, 321 NLRB 144 (1996).

From the Respondent's incorporation in 1986 until July 1, 1993, Maura Bluestone, although still an employee of Montefiore, served as the Respondent's executive director. The Respondent's operations were considered to be a department within the Medical Center, staffed by Montefiore employees. In addition to Blue-stone, Montefiore assigned clerical employees to work for the Respondent. These clerical employees were covered by and paid in accordance with the collective-bargaining agreement between the Union and Montefiore. When new employees were required by the Respondent, Bluestone made requisitions to Montefiore's personnel department and that department hired or transferred employees to the Respondent's operations as needed.

Montefiore is a member of the League of Voluntary Hospitals (the League), an employer-member association. The League has had a series of collective-bargaining agreements with the Union that cover the approximately 3500 Montefiore employees, including the clerical employees assigned to work for the Respondent. In addition to the League contract, Montefiore had a local agreement with the Union defining the units of Montefiore employees that are covered by the various collective-bargaining agreements.

As of mid-1993, Montefiore employed approximately 17 clerical employees who were assigned to the Respondent's operations. All 17 clerical employees were covered by the collective-bargaining agreements between Montefi...

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