On December 3rd, a massive crowd of SEIU 721 members gathered on the steps of the Los Angeles General Medical Center in Boyle Heights to announce the results of a landmark study, “Shining a Light on Contracting Out in Los Angeles County,” exposing how LA County tax dollars are hard at work making the private sector rich. The county government rubber-stamps nearly $6.2 billion annually to private firms without requiring them to pay a living wage.
“LA County is operating a taxpayer-to-private-sector pipeline,” said Raymond Meza, Deputy Chief of Staff at SEIU 721, which published the study. “Our tax dollars are hard at work making the private sector rich – and the problem is growing. More than one out of every ten taxpayer dollars goes straight
to private firms that are not required to pay LA County’s own enhanced living wage.
It’s a race to the bottom paid for with our taxpayer dollars.”
“Of particular concern is the sharp rise in healthcare expenditures – and the overreliance on registries,” explained Steve Koffroth, Director of Collective Bargaining and Research at SEIU 721. “Take a look at what we’ve seen in just the past five fiscal years. Mental Health Services private contractor spending grew from $827,000 to $25 million. That’s 2,923%. Temporary Nurse Personnel private contractor spending ballooned from $2 million to $81 million. That’s 3,950%. This odious practice affects clinics and hospitals just like the one right behind us – the Los Angeles General Medical Center. And it’s got to stop!”
‘“I want to be clear – none of this is happening by accident,” said Eloy Alvarez, SEIU 721’s Inland Area Regional Direct
or who is deeply involved in contract negotiations with LA County. “The numbers reveal just how extensive this manufactured crisis is. As of January of 2024, LA County had an overall job vacancy rate of 18%. Most glaringly, the Department of Human Resources maintained a 31% job vacancy rate overall. And all the while, LA County leadership uses this set-up that they created as justification to outsource the work to private corporations.”
“Instead of filling vacancies, they would rather spend millions on contract employees,” said Cynthia Mitchel, a Registered Nurse at the Los Angeles General Medical Center. “It’s obvious what LA County’s goal is – to continue contracting out. We have even endured comments like, “Los Angeles County should treat employees better.” It is a shame and downright embarrassing to have contract employees coming to our house and telling us these things. We are tired of Los Angeles County contracting out our jobs. We are tired of Los Angeles County looking us in the face and saying, “We care about you.” We are tired of Los Angeles County looking us in the face and saying, “We hear your concerns.”
Our patients – our communities – deserve the best care. Enough is enough!”
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