New research to detail how $400 million in new interest expense from
Carlyle deal could harm Florida nursing home residents
MIAMI, Nov. 6 /PRNewswire/ --
WHAT: On the day that the Manor Care nursing home chain tells the SEC
that it expects to close its $6.6 billion buyout deal with the
Carlyle Group, Florida senior care advocates, caregivers, and
community members will hold a press conference to call for
regulators to fully investigate the impact of the takeover, which
involves millions in taxpayer money.
WHY: New research released at the rally will detail how a massive new
debt load from the deal could have serious impacts on the lives of
Florida state nursing home residents if costs are cut to cover
interest payments on that debt. Cost cutting and reduced staffing
could potentially cause longer waits for care and less attention to
residents' needs. Manor Care runs 29 nursing homes in Florida.
Members of Congress in Washington will soon be holding hearings
about the Carlyle takeover of Manor Care and elected officials in
at least six states are calling for similar hearings. Advocates are
calling on regulators to slow down the process of licensing the
Carlyle Group until the hearings and their findings are complete.
WHEN: Wednesday, November 7, 2007 at 4:00pm
WHERE: 5725 NW 186TH ST, HIALEAH, FL 33015
WHO: Senator Frederica Wilson; Monica Russo, President SEIU Florida
Healthcare; Representatives from Seacrest Nursing Home Employee;
the Association of Retired Americans and the Florida Consumer
BACKGROUND: In a recent front page expose (9/23/07), The New York Times
investigated what happens to nursing home quality of care
when the parent companies are bought out by private equity
firms. The Times found that among other concerns there have
been serious quality of care deficiencies and staffing cuts,
sometimes below federally recommended levels.
HCR Manor Care, based in Toledo, Ohio, is the largest nursing home provider in the country, with more than 37,000 resident beds nationwide and $3.6 billion in annual revenue. With more than $71 billion in assets under management, the Carlyle Group is one of the five largest corporate buyout firms in the nation. Carlyle is taking over Manor Care in a leveraged buyout deal worth $6.3 billion.
|SOURCE SEIU Florida Healthcare|
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