Nurse Wins $27.5 Million in Dignity Health Retaliation Case

3 Min Read Published July 2, 2025
Nancy Valla, former CNO, smiles in a professional headshot; beside her is the exterior of St. Mary Medical Center, with banners displaying the hospital’s core values: 'Compassion' & 'Integrity'
Nancy Valla, former CNO, smiles in a professional headshot; beside her is the exterior of St. Mary Medical Center, with banners displaying the hospital’s core values: 'Compassion' & 'Integrity'

Image source: Facebook, Dignity Health

In a recent jury verdict, Nancy Valla, a former chief nursing officer at Dignity Health St. Mary Medical Center, was awarded $27.5 million after a jury found that Dignity Health, part of the CommonSpirit Health system, retaliated against her for raising critical patient safety concerns.

The Case: Standing Up for Patient Safety

Nancy Valla’s case centered on her repeated efforts to address urgent safety issues at her hospital. She reported problems including:

  • Unsterilized surgical instruments
  • Unsafe anesthesia machines and defibrillators
  • A series of suicide deaths from the hospital’s parking structure

Despite her advocacy, hospital executives allegedly dismissed her concerns, prioritizing optics and cost over patient safety. When Valla even offered to fund suicide-prevention barriers herself, leadership declined, fearing it would make them “look guilty.”

A particularly tragic incident in March 2019 involved an unhoused woman who jumped from the hospital’s parking structure. Emergency staff failed to provide federally required care, misinterpreting distance regulations, and the woman died at the scene. Valla challenged leadership over this failure, further escalating tensions.

Retaliation and the Jury’s Message

After repeatedly pushing for change, Valla faced hostility and was ultimately terminated. The jury found unanimously that Dignity Health retaliated against her for her whistleblowing, awarding her:

  • $5 million in economic damages
  • $22.5 million in compensatory damages

This is one of the largest single-plaintiff employment verdicts in California this year and a clear rebuke to hospital leadership’s response to patient safety concerns.

Valla’s attorney, Brennan Hershey, said: “This case was always about doing the right thing. Ms. Valla stood up for vulnerable patients and was met with hostility instead of support. The jury's message was clear—retaliation has consequences and the truth always prevails.”

Why This Matters for Nurses

Nurses are often the first to notice and report safety risks. This verdict underscores the importance—and the risks—of speaking up in healthcare settings:

  • Legal Protection: The case demonstrates that the law can protect nurses and healthcare professionals who advocate for patient safety, even against large institutions.
  • Empowerment: Valla’s courage, and the jury’s strong response, may empower more nurses to raise concerns without fear of retaliation.
  • Systemic Change: The verdict puts pressure on hospitals to listen to frontline staff and prioritize patient safety over reputation or cost.

Valla’s co-counsel, Johnny Rundell, said: “This verdict sends a clear message that healthcare institutions cannot silence employees who speak up for patient safety. Nancy Valla's courage in the face of retaliation has paved the way for other healthcare workers to stand up for what's right without fear of losing their careers.”

After the verdict, several jurors hugged Valla, some in tears, expressing admiration for her bravery. The case, widely covered in the media, highlights the emotional toll on nurses who advocate for change—and the deep gratitude of those who witness justice served. Valla’s victory is a milestone for nurse advocates and a reminder that standing up for patients is not just the right thing to do—it’s protected by law.

🤔 Nurses, what do you think about this case? Share your thoughts in the discussion forum below.

 

If you have a nursing news story that deserves to be heard, we want to amplify it to our massive community of millions of nurses! Get your story in front of Nurse.org Editors now - click here to fill out our quick submission form today!

 

 

Angelina Walker
Angelina Walker
Sr. Director, Digital Marketing and Community

Angelina has her finger on the pulse of everything nursing. Whether it's a trending news topic, valuable resource or, heartfelt story, Angelina is an expert at producing content that nurses love to read. As a former nurse recruiter turned marketer, she specializes in warmly engaging with the nursing community and exponentially growing our social presence.

Education:
Bachelor of the Arts (BA), Multi/Interdisciplinary Studies - Ethnicity, Gender, and Labor, University of Washington

Read More From Angelina
Go to the top of page