A new class-action lawsuit against several major U.S. hospital systems and the American Society of Health-System Pharmacists (ASHP) is drawing national attention to longstanding issues of unfair labor practices within the healthcare industry—specifically within pharmacy residency programs. Filed by former pharmacy residents, the suit alleges collusion among hospital systems to suppress wages and enforce rigid employment terms, a practice critics argue reflects deeper structural flaws in how the healthcare system treats its workforce.
Sarah M. Worthy, CEO of DoorSpace, a healthcare technology company focused on improving workplace culture and operations in medical organizations, voiced strong support for the plaintiffs and used the case as a rallying cry for systemic change.
“For far too long, medical employees have been handed the short end of the stick when it comes to fair compensation and benefits, despite being the backbone of the healthcare system,” Worthy said. “While hospitals and healthcare corporations rake in billions, the very workers keeping patients alive are forced to accept stagnant wages, grueling hours, and minimal support.”
The lawsuit claims that the participating hospitals and ASHP, which accredits residency programs, coordinated to set standardized wages for pharmacy residents, effectively preventing any form of salary negotiation. This, the plaintiffs argue, constitutes wage fixing and violates federal antitrust laws. If proven true, the implications could extend far beyond the pharmacy sector, calling into question similar practices in other healthcare training programs.
Worthy emphasized that the legal action is not an isolated event, but part of a broader reckoning with the way frontline healthcare workers are treated. “The recent lawsuit filed against major U.S. hospital systems and the American Society of Health-System Pharmacists is a stark example of how this neglect isn’t just an oversight—it’s the result of a profit-driven system that prioritizes executives and shareholders over frontline workers,” she stated.
Residency programs are a required step for pharmacists pursuing specialized or clinical roles, yet many report working long hours for pay that barely covers basic living expenses. Unlike medical residencies for physicians, which are federally funded in part through Medicare, pharmacy residencies often rely on institutional support and private funding—creating a power imbalance that critics say leaves residents vulnerable to exploitation.
“This legal action underscores the pressing need to reevaluate and reform residency programs, ensuring that aspiring pharmacists receive fair compensation and opportunities without being subjected to exploitative practices,” Worthy added.
The timing of the lawsuit also aligns with increasing scrutiny over the role of private equity and corporate consolidation in healthcare. In recent years, a growing number of hospitals have merged into larger systems or been acquired by investment firms, resulting in cost-cutting measures that frequently impact staff wages, benefits, and working conditions. Industry observers argue that this corporate mindset has led to a decline in patient care quality, as employee burnout and turnover reach record levels.
“Until the healthcare industry values people over profit, we will continue to see declining patient care as the norm rather than the exception,” said Worthy.
The class-action suit could set a precedent if the plaintiffs are successful, potentially opening the door to similar legal challenges across the healthcare landscape. More immediately, it has amplified calls from labor advocates, professional organizations, and healthcare workers themselves for increased oversight and regulation of residency programs.
Whether through legislative reform, unionization efforts, or further legal action, the issue is unlikely to fade anytime soon. As the healthcare system continues to grapple with staffing shortages, rising costs, and ongoing public health challenges, the question of how to fairly compensate and support the professionals on the frontlines remains more urgent than ever.
