Failure To Address Patient Safety Leads To Huge Whistleblower Retaliation Verdict

Nancy Valla, a former chief nursing officer at Dignity Health St. Mary Medical Center, was awarded $27.5 million by a jury after it found that the hospital, which is part of the CommonSpirit Health system, retaliated against her for raising serious patient safety concerns.

Valla reported critical issues at her hospital, including unsterilized surgical instruments, unsafe anesthesia machines and defibrillators, and a troubling pattern of suicides from the hospital's parking structure.

Despite her repeated warnings, hospital executives allegedly dismissed her concerns, prioritizing the hospital's reputation and financial considerations over patient safety. In one instance, Valla even offered to personally fund suicide-prevention barriers, but leadership refused, fearing it would make the hospital look culpable.

A particularly tragic event in March 2019 involved an unhoused woman who died after jumping from the hospital's parking structure. Emergency staff failed to provide federally-required care, misinterpreting regulations about proximity, and the woman died at the scene. Valla challenged the hospital leadership over this failure, which further heightened tensions between her and the administration.

After her continued advocacy for patient safety, Valla faced increasing hostility from hospital leadership and was ultimately terminated. The jury unanimously found that Dignity Health retaliated against her for her whistleblowing, awarding her $5 million in economic damages and $22.5 million in compensatory damages. This verdict is one of the largest single-plaintiff employment awards in California for the year and serves as a strong rebuke to the hospital's handling of patient safety concerns.

Source: https://nurse.org/news/nurse-whistleblower-wins-27m-verdict/

Commentary

One of the most significant aggravating factors in the case involving Nancy Valla and Dignity Health St. Mary Medical Center was the hospital's repeated failure to address suicide risks on its premises.

Valla persistently warned hospital leadership about the dangers posed by the parking structure, where a troubling pattern of suicides had emerged. Her concerns were not only ignored but actively dismissed, with leadership refusing to implement suicide-prevention barriers because of fears that such measures would imply culpability.

The jury viewed the hospital's disregard for suicide prevention as a serious breach of its duty to protect vulnerable individuals. This failure to act, especially after repeated internal warnings, was a central reason for the unusually large verdict.

The jury awarded $27.5 million, including substantial compensatory damages, in recognition of the harm caused not only to Valla but also to the broader principle of patient safety.

The verdict reflected the view that the hospital's retaliation against a whistleblower who advocated for life-saving measures was especially egregious because it endangered lives and discouraged others from speaking up.

To better protect whistleblowers, healthcare organizations should implement several key steps.

Healthcare employers must establish clear, accessible channels for reporting safety concerns, ensuring that staff can raise issues without fear of retaliation.

Leadership should foster a culture of transparency and accountability, where concerns are investigated promptly and thoroughly. Legal protections for whistleblowers - such as anti-retaliation policies and confidential reporting mechanisms - should be strictly enforced.

Regular training for both staff and management on the importance of whistleblower protections and patient safety can reinforce these values. By prioritizing patient safety and supporting those who advocate for it, healthcare organizations can prevent harm, improve trust, and lower their risk exposure.

Finally, your opinion is important to us. Please complete the opinion survey:

Product

Articles

Is AI A Tool To Support Workers Or A Tool To Replace Workers? You Make The Call

Different generations view AI differently, but all agree on one thing. We provide the survey information and ask you how you view AI and work.

"Snail Mail" Malicious QR Codes: Steps To Lower Your Risk

A new malware campaign has kicked off with malicious QR codes delivered in the mail. We examine and provide some solutions for employers.

Failure To Address Patient Safety Leads To Huge Whistleblower Retaliation Verdict

A California jury delivers a historic verdict in favor of a nurse whistleblower who raised patient safety concerns. We examine.

Do Employees Think They Are Paid Fairly? You Make The Call

Research suggests that approximately half of employees think they are paid fairly. We want to know what you think. You make the call and join the conversation.

New Phishing Campaign Targets Social Media Users And Threatens Legal Action

A new phishing campaign is wreaking havoc by claiming targets are guilty of copyright infringement. We examine and list the red flags.