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Colorado hospital hit with another age discrimination lawsuit

Montrose Regional Health is now facing its second lawsuit in nine years accusing it of age discrimination against older nurses, an accusation the healthcare provider strongly denies.

Both lawsuits claimed the hospital supervisors allegedly demeaned and forced out nurses 40 years old or older, according to documents from both cases. The hospital denies the latest allegations and says it intends to defend against them.

The most recent litigation was filed on Tuesday by the Equal Employment Opportunity Commission, a U.S. government agency that enforces labor laws. The EEOC filed the action on behalf of an unspecified number of former Montrose nurses, as it did in the previous lawsuit filed in 2016. In both lawsuits, a single complaintant among the group was identified as the primary subject of its legal action.

In the 2016 case, that employee was Katherine Casias. Casias was hired in 1985 and, per case documents, never received a below-average review or formal discipline during her employment.

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The front entrance at Montrose Regional Health. Jeffrey Beall

However, Casias was terminated in 2012 after complaining of unfair treatment toward older employees and leniency toward younger ones. Four supervisors -- three in the nursing department and another in human resources -- were named in the lawsuit. One nursing supervisor, Chief Nursing Officer Joan Napolilli, allegedly told Casias directly that younger nurses were "easier to train" and cheaper to employ," could "dance around the older nurses," and referred to Casias as an "old b***h."

Other older employees reportedly overheard Napolilli instruct staff to "work that old grey-haired b***h into the ground" and to work an employee "long and hard until she quit or got fired," according to case documents.

CBS Colorado reached out to Napolilli for comment on Sunday.  

The EEOC claims Casias's replacement was a nurse younger than 40.

The 2016 litigation was brought by the EEOC after a conciliation process, or negotiation between the hospital and the former nurses, and both sides failed to reach a resolution. 

Two years later, Montrose Regional Health settled the 2016 complaint by agreeing to pay a $400,000 penalty and to conduct yearly anti-discrimination training for its employees. It was to do so for three years, ending in 2021.

A Montrose Regional Health spokesperson told CBS News Colorado on Saturday that three of the four supervisors named in the 2016 lawsuit, including Napolilli, no longer work there.

The fourth is the hospital's current chief nursing officer, and she's named in the most recent filing.

That supervisor reportedly commented during a November 2020 staff meeting that the hospital needed more "young," "youthful," and "energetic" staff, according to the filing. A number of nurses said they witnessed the comments. One complained about the treatment of older employees, and that one, according to the EEOC, was fired shortly after.

In the following six months, six other nurses in their late 50s or 60s were fired or forced to resign, according to the EEOC's complaint. Lori Schwab, a registered nurse, was among that group. She was 62 at the time. She resigned in April 2021, the last year Montrose Regional Health was required to conduct age discrimination training from the prior lawsuit's settlement agreement. Schwab, according to the EEOC, was replaced by a 30-year-old nurse. 

In a statement to CBS Colorado, Montrose Regional Hospital strongly denies the allegations in the new lawsuit:

MRH received the EEOC charge in 2021 and we have fully cooperated with the investigation over the past four years. While we are disappointed in the recent decision, we want to state clearly that we deny the allegations made against us. We also participated in the conciliation process in good faith, seeking an amicable resolution, but found it difficult to engage meaningfully as the EEOC declined to provide us with essential information. In addition, we complied with every aspect of the consent decree from December 2017 through January 2021. This included submitting semi-annual reports to the EEOC on age discrimination, conducting quarterly training on the ADEA, retaliation, and other protected classes, ensuring policies were reviewed by legal counsel, and conducting periodic reviews of our disciplinary processes, among other requirements.  

Montrose Regional Health intends to vigorously defend against these claims. At the same time, MRH will work with the EEOC to better understand their concerns and provide any additional information needed.   

Few details have been released by the EEOC at this time, and MRH plans to formally request additional information regarding the nature of the claims. While MRH takes this type of claim very seriously, the organization is both disappointed and concerned that the EEOC has chosen to pursue litigation given MRH's longstanding commitment to providing a respectful and nurturing workplace.

 "Our health system has always been dedicated to treating our employees with respect and fairness," Dr. Mary Vader, Chairperson of the MRH Board of Directors, stated. "We are proud of the dedicated people who choose to work here and the high standards they uphold every day."

Erin Skees, Chief Human Resources Officer at MRH, added: "We adamantly deny any wrongdoing and remain confident in our employment practices, which comply fully with the Age Discrimination in Employment Act and all applicable laws. Montrose Regional Health is committed to fostering a workplace where all employees are valued and supported."  

On its website, Montrose Regional Health states it's a nonprofit 501(c)(3) healthcare system serving Montrose, San Miguel, Ouray, Gunnison, Delta, Hinsdale, and San Juan counties. It claims to be the second-largest employer in Montrose County with more than 950 employees.

As in the previous litigation, the two sides also failed to reach an agreement in the most recent complaint's conciliation process. The lawsuit was filed in U.S. Federal Court in Denver. A hearing to determine future scheduling in the lawsuit's proceedings is planned for Dec. 4.

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