Indiana – Hospitals Won’t Be Outsourced

Richmond, Indiana

Plans to privatize three state hospitals in Richmond, Evansville and Madison—whose direct care employees are represented by AFSCME Council 62—were formally dropped in January when it became clear it would cost taxpayers too much money.

Council 62 members held rallies, put up yard signs and drummed up community support two years ago when they first learned of the privatization plans. But state officials finally “had to admit they couldn't privatize Richmond State Hospital without costing the taxpayers more money than it would take for the state to run it,” says David Warrick, the council's executive director (and an International vice president).

Privatization could have threatened the jobs of some 300 RNs, psychiatric attendants and behavioral technicians at Richmond State Hospital who are represented by Local 795. Council 62 also represents about 450 direct care workers at the other two hospitals, which received no bids from privateers.