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New York Times Exposes Harm to Seniors After Private Equity Buyouts of Nursing Homes
Date:9/24/2007

Findings Raise Serious Concerns for Massive, Pending Carlyle Group Takeover

of HCR Manor Care

SEIU Calls on Carlyle to Ensure Buyout Doesn't Worsen Care

WASHINGTON, Sept. 24 /PRNewswire-USNewswire/ -- A stunning front page expose by the New York Times Sunday details how cuts to staffing and operations at nursing homes bought by private equity firms across the country have enriched top executives and buyout firms but left residents worse off. The newspaper's investigation raises serious concerns as huge buyout firm the Carlyle Group finalizes this fall what will be the largest-ever takeover of a nursing home chain, the $6.3 billion buyout of HCR Manor Care.

Last week, the nation's largest healthcare workers union, SEIU, launched a nationwide effort calling on Carlyle to put patient care above CEO profits in the Manor Care takeover. For more visit http://www.CarlyleFixManorCareNow.org

The New York Times' investigation found:

-- Serious Quality of Care Deficiencies -- "Serious quality-of-care deficiencies -- like moldy food and the restraining of residents for long periods or the administration of wrong medications -- rose at every large nursing home chain after it was acquired by a private investment group from 2000 to 2006, even as citations declined at many other homes and chains."

-- -- Staffing Cuts, Sometimes Below Legal Levels -- "At 60 percent of homes bought by large private equity groups from 2000 to 2006, managers have cut the number of clinical registered nurses, sometimes far below levels required by law. During that period, staffing at many of the nation's other homes has fallen much less or grown."

-- Byzantine Structures To Avoid Responsibility, Regulation -- "Private investment companies have made it very difficult for plaintiffs to succeed in court and for regulators to levy chainwide fines by creating com
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SOURCE SEIU
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