Delay Costing West Virginia State Pension Fund, Other Shareholders $1
Million a Day
CHARLESTON, W.Va., Dec. 17 /PRNewswire-FirstCall/ -- Manor Care, Inc. (NYSE: HCR) today filed a motion with the West Virginia Heath Care Authority (Authority) to dissolve the stay issued to the Authority's previous decision to approve a certificate of need (CON) application regarding the sale of Manor Care to The Carlyle Group. The motion also requests that the Authority issue an immediate decision in the matter.
On December 14, 2007, the Authority held a reconsideration hearing of its previous decision to approve the CON after District 1199 of the Health Care and Social Services Union and the Service Employees International Union (SEIU) requested reconsideration. As was clear from the day's proceedings, there was no evidence to support SEIU's request for reconsideration.
"We have been and continue to be committed to providing the highest quality of care to our patients in West Virginia -- and across the country -- and we are confident this transaction will only strengthen our efforts in that area. Quick approval from West Virginia is essential," said Stephen L. Guillard, executive vice president and chief operating officer of Manor Care. "Based on the failure of SEIU to raise any legitimate legal issues during the six-hour hearing on Friday, we believe there are no grounds to maintain the stay. We are filing a motion for an immediate lift of the stay and respectfully requesting that the Health Care Authority issue an immediate decision on the transaction."
The Authority approved Manor Care's CON application on October 19, 2007, and found that Manor Care had satisfied all of the requirements set forth in the CON application. Neither District 1199 nor the SEIU chose to participate in the proceedings surrounding that CON application. On November 16, 2007, nearly the last day before the deadline for requesting reconsiderations, District 1199 requested a stay and reconsideration of the decision. The Authority granted the motion to reconsider on November 20, 2007, setting December 14 as the reconsideration hearing date.
As of the latest posting of the West Virginia Investment Management Board, which manages state pension plans, the fund holds approximately 161,000 shares of Manor Care, Inc. stock. Each day this transaction is delayed results in a monetary loss of about $1 million for Manor Care shareholders nationwide, including West Virginia pension holders.
"We respectfully request that the Health Care Authority lift the stay and approve our transaction immediately so that we can focus on our core mission -- bringing quality care to our patients in West Virginia," continued Guillard.
Manor Care, Inc., through its operating group HCR Manor Care, is a leading provider of short-term post-acute services and long-term care. The company's nearly 60,000 employees provide high-quality care for patients and residents through a network of more than 500 skilled nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home care agencies. The company operates primarily under the respected Heartland, ManorCare Health Services and Arden Courts names.
|SOURCE Manor Care, Inc.|
Copyright©2007 PR Newswire.
All rights reserved