They've struck a deal. A California labor union is pulling a pair of hospital initiatives in an effort to avoid a costly ballot fight.

The SEUI's United Healthcare Workers is dropping efforts to limit how hospitals price medical care and compensate executives.

The union had characterized this as both a burden on patients and the healthcare system but now says negotiations with the California Hospital Association will tackle a bigger problem: MediCal reform.

"California's 49th out of 50 in terms of the costs that are absorbed by the health care system," UHW President Dave Regan said. 

A $100 million fund will be established for advocacy.

Increasing MediCal funding for hospitals could make them more open to funding benefit increases for workers.