Former employees launch discrimination suit against Central Peninsula Hospital

Published 4:30 am Friday, August 7, 2026

The Central Peninsula Hospital is being accused of discrimination by a pair of former employees.

A complaint filed in Kenai Superior Court alleges that the two black crisis clinicians experienced racial discrimination and were treated differently than their white co-workers at the Soldotna hospital.

Shaira Shah began work at the hospital’s Psychiatric Emergency Services (PES) department around Sept. 16, 2024 and Cautrese Alexander started around Oct. 7, 2025, at which time they were the only non-white staff members in the entire Behavioral Health Department. Over the first year at the job, Shah received only positive reviews of her work. But things began to change in January 2026 when a woman was promoted to be the director of the Behavioral Health Department.

After welcoming the new director to the team, Shah was told: “Nobody knows what you’re doing here,” and that Shah would receive a new work assignment and all of her patients would be distributed to other clinicians. She also took away Shah’s office without discussing the matter with her

“The reassignment of Shah’s office caused her humiliation, anger, distress, and a profound sense of degradation because it publicly communicated that she had been displaced from her established role,” according to the complaint filed by the pair’s attorney Christina McDonogh. “This action led Shah to have reasonable concern that she was being singled out because of her race.”

Alexander was informed she was being reassigned from her contracted position as a crisis clinician to an outpatient clinician and had all her patients reassigned. No other staff members were reassigned.

Within two weeks, Alexander was informed by another worker that she had been told to assign all of the department’s assessments, which are considered menial tasks, to Alexander.

Alexander reported her concerns to HR as she suspected the director and supervisor of the PES team may be discriminating against her due to her race.

According to the court document, two other PES team members described the director’s behavior toward black staff during a meeting as “awful”, while the white staff was treated “sweet” and that they “were very disturbed by the extreme contrast in how (the director) treated the different races.”

The filing says one white staff member informed HR that they observed the director and supervisor “use a noticeably harsher tone, attitude, and demeanor when they spoke with black staff.”

Despite the reports, the court document says HR staff were dismissive of Alexander and Shah’s concerns and complained about the detailed records they provided to document the discrimination.

Both Shah and Alexander reported physical and emotional distress within weeks of the incidents beginning, citing severe anxiety, nausea and insomnia, among other symptoms.

The supervisor also outlined a new set of department rules that included an extremely difficult schedule, unusual expanded duties, and harmful policy restrictions. While Alexander and Shah made a point to follow the expectations, no white staff made any effort to follow the expectations and some even asked Shah why she was making the effort.

The complaint outlines several other instances where Shah and Alexander were treated more harshly than their white coworkers.

It says that by March 2, 2026, the workplace had become untenable and both employees tendered their resignation, although both continue to experience long-lasting health issues.

“Shah is recovering from the severe emotional distress she experienced as a result of Defendant’s racial discrimination and retaliation, but still experiences severe anxiety, depression, nausea, high blood pressure, low blood sugar, and insomnia, for which she has been medicated. She has found difficulty finding employment in the Soldotna area,” according to the court document

“Alexander is recovering from the severe emotional distress she experienced as a result of Defendant’s racial discrimination and retaliation and still experiences health issues such as anxiety, depression, brain fog, hypertension, insomnia, and mood swings.”

The lawsuit is seeking a declaration that the hospital’s conduct violated the Alaska Human Rights Act. It is also seeking back pay, future lost wages, relocation-related losses, lost earning capacity and benefits, as well as compensatory and punitive damages for emotional distress, mental anguish, humiliation, relocation-related losses and reputational harm.

Central Peninsula Hospital would not comment on the details of the complaint.

“As the matter you are inquiring about involves pending litigation, Central Peninsula Hospital is not able to comment on the case,” said Bruce Richards, director of government affairs and marketing. “I can share that CPH remains committed to providing a safe, respectful, and equitable workplace for all employees.”

None of the allegations have been proven in court.