With a year-end deadline looming to close a $6.6 billion takeover deal, the Carlyle Group and HCR Manor Care, the nation's largest nursing home chain, are attempting to steamroll the regulatory process in states to avoid addressing concerns about resident care.
Despite a push to get states to rubber stamp approval of the buyout, state officials in Florida, Maryland, Oklahoma, Kansas, Virginia, Michigan, Illinois, and West Virginia have yet to issue licenses for the Carlyle takeover of nursing homes, according to the latest information available to SEIU.
Those eight states have approximately 120 Manor Care nursing homes, nearly half of all Manor Care's skilled nursing facilities.
Despite the fact that eight states have not approved the takeover, Manor Care spokesperson Rick Rump was cited by the Associated Press as claiming that, "Regulators in more than 30 states have now approved the sale.... The only state that hasn't is West Virginia."
"Carlyle and Manor Care are pulling out all the stops in an attempt to steamroll the process," said Gerry Hudson, Executive Vice President, SEIU Healthcare, "They seem to want this deal all packaged up with a bow for the holidays, even if it means ignoring the responsible questions of state officials and others about the impact on care. It appears they weren't prepared for people to ask questions about the impact of this deal on nursing home residents and caregivers."
Manor Care staffing levels are below those identified by experts in a federally commissioned study as improving patient outcomes and its homes have been cited repeatedly for deficiencies that violate resident care standards. Residents, family members, and caregivers are calling on regulators and lawmakers to make sure the Carlyle buyout will make care better and increase staffing to recommended levels.
(Important Action Alert for You Below)
Corporate raiders are turning their profiteers' gaze on our nation's nursing homes - and Michigan families should be very worried.
Recently, the investment giant Carlyle Group set its sights on buying HCR Manor Care Inc., which owns 28 nursing homes with 3,300 nursing beds in Michigan.
Carlyle is worth $75 billion and, as one of the world's most powerful private equity firms, has a diverse portfolio that includes interests in the military-industrial complex as well as holdings in Dunkin' Donuts and Hertz Rental Cars.
Now Carlyle wants to add Michigan's nursing homes to its portfolio of assets to maximize its profits - without making any commitment to improving health care.
SEIU Healthcare Michigan is partnering with citizens, healthcare providers, elected officials, businesses and countless others to ensure that our seniors aren't put at risk while private equity firms like Carlyle rake in massive profits - much of it public Medicare and Medicaid dollars - while ignoring patient needs.
If the national trend is any indication, we all have good reason to be alarmed.
In a stunning front-page expose on Sept. 23, 2007, a New York Times investigation found that large private equity firms that bought nursing homes across the country between 2000 and 2006 slashed the number of registered nurses far below levels required by law, experienced higher numbers of patient care violations and more deaths. In comparison, during the same period, homes that were not owned by such firms maintained or even expanded staffing levels and had better track records.
The NYT report also showed that private equity firms buy homes and strip them quickly for profit. At the same time, these firms insulate their new acquisitions behind complex layers of corporate ownership to thwart families from holding them accountable for the death or injury of a loved one.
The bottom line for these equity firms is that Michigan's nursing homes are acquisitions, to be bought and sold for maximum profit. The care and well-being of the elderly and often ailing men and women who live there is just collateral.
The horror stories are heart-breaking, as evidenced in the NYT report...
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