Bankrupt Hospital Sues Union Over Reinstated Nurse Accused of Falsifying Safety Checks

A Rhode Island hospital is fighting to uphold its termination of a nurse who allegedly falsified critical patient safety documentation, highlighting the tension between labor protections and patient safety standards in healthcare settings.

Prospect CharterCARE, operator of bankrupt Fatima Hospital, has filed a federal lawsuit against the United Nurses and Allied Professionals (UNAP) union to overturn an arbitrator's decision reinstating nurse Victoria Gallucci after her termination for documentation violations in February 2025.

About The Case

The case centers on mandatory 15-minute safety checks in Fatima Hospital's locked-down Behavioral Health unit, where patients with serious psychological conditions receive treatment. According to court documents, Gallucci and five colleagues documented approximately 48 safety checks for a patient who had been discharged hours earlier, with staff noting the patient's supposed activities despite an empty, folded-up bed.

"This suggested to management that Gallucci and all of her coworkers had not, in fact, performed any safety checks that evening but, instead, had 'rubber-stamped' all of the entries in the safety binder," states the hospital's lawsuit. The facility concluded this represented "willful and intentional falsification of patient records."

The hospital terminated all six employees involved. 

• Three resigned immediately, 
• One withdrew their grievance, 
• Only Gallucci's case proceeded to arbitration. 

During the hearing, Gallucci testified to performing at least six checks and noticing the empty bed but failed to report the discrepancy, testimony the arbitrator found not credible.

Despite confirming misconduct occurred, arbitrator Jeffrey Cassidy ruled in December 2025 that termination lacked "just cause" under the collective bargaining agreement. He ordered Gallucci's reinstatement after an unpaid suspension lasting from February 2025 to January 2026.

The hospital's lawsuit argues this ruling "violates Rhode Island public policy" by requiring the reinstatement of a nurse who intentionally falsified safety documentation. The case raises profound questions about accountability in nursing practice and the balance between labor protections and patient safety standards.

Why This Case Matters To Nurses

For practicing nurses, this case serves as a stark reminder of documentation's critical importance. Beyond being a regulatory requirement, accurate documentation serves as both legal protection and a vital component of patient safety systems. 

• The American Nurses Association’s Code of Ethics emphasizes nurses’ responsibility to provide accurate, truthful health information and documentation as a core professional duty.

Documentation errors in healthcare settings often stem from systemic issues rather than individual negligence. 

• Research summarized by AHRQ and others shows that high workloads, inadequate staffing, and poorly designed documentation systems contribute to errors and missed or incomplete documentation. In contrast, this case involves allegations of deliberate falsification rather than inadvertent error. 

The hospital's legal challenge occurs against the backdrop of CharterCARE's bankruptcy proceedings in Texas, adding financial and operational complexity to an already difficult situation. The ultimate ruling could establish precedent for how healthcare facilities address documentation violations and the extent to which arbitration decisions can override safety concerns.

As this case moves through the federal courts, it offers an important opportunity for reflection on nursing accountability, the purpose of documentation, and how healthcare organizations balance employee rights with their obligation to maintain rigorous safety standards for vulnerable patients.

🤔Nurses, share your thoughts below.