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Central Pennsylvania – Geisinger and Evangelical Community Hospital, now part of WellSpan Health, have agreed to pay $28.5 million to settle a class-action lawsuit accusing them of maintaining a secret “no-poach” agreement that allegedly restricted employee mobility and suppressed wages.

According to court filings, the proposed settlement, awaiting judicial approval, allocates $19 million from Geisinger and $9.5 million from Evangelical. If approved, nearly 12,000 former employees who worked at both organizations between January 1, 2014, and August 5, 2020, would receive compensation. Each eligible worker is expected to receive an average of $1,500, with a minimum payout of $250, after legal fees and administrative costs are deducted.

Background of the Case

The class-action suit, first filed in 2021, claimed executives from both healthcare systems had entered into a verbal agreement not to recruit or hire each other’s employees. Plaintiffs alleged that these arrangements were discussed privately, later confirmed through emails, and intentionally concealed.

The lawsuit gained traction after a Department of Justice (DOJ) antitrust investigation uncovered evidence of coordination between the two hospital systems during Geisinger’s proposed partial acquisition of Evangelical. That deal was later blocked, and a 2021 DOJ settlement limited Geisinger’s stake in Evangelical to 7.5% passive ownership.

Statements from Geisinger

Geisinger, which operates 10 hospitals and became part of Kaiser Permanente’s Risant Health in 2024, denied any wrongdoing. In a statement to Fierce Healthcare, the organization said,

“We disagree with the allegations but chose to resolve the matter so we can stay focused on what truly matters, our patients, our people, and the communities we serve.”

The statement added that Geisinger remains “deeply committed to fostering a workplace where every individual is respected, supported, and recognized.”

Settlement Process

Court records show that both sides engaged in lengthy negotiations beginning in 2023. After several months of discussions, Evangelical reached a preliminary agreement on March 13, 2025, followed by Geisinger on March 27, 2025. The terms were finalized later that year.

If the court approves the deal, the payments will officially close the chapter on a case that has drawn national attention to hiring practices within the healthcare industry.