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SEIU Applauds Bipartisan Leadership of Sen. Finance Committee in Push for Greater Oversight of Private Equity Takeovers of Nursing Homes
Date:10/18/2007

On the day after Manor Care shareholders approve $6.3B Carlyle Group buyout, top oversight committee asks Carlyle, other buyout firms, for info on nursing home ownership, management

WASHINGTON, Oct. 18 /PRNewswire-USNewswire/ -- The nation's largest healthcare workers union applauded the bipartisan leadership of the Senate Finance Committee today as it took new steps to hold private equity firms accountable for the care, staffing, and conditions at nursing homes they own.

"On the eve of the largest nursing home takeover in history, increased efforts by Congress to hold buyout firms accountable are timely and necessary," said Gerry Hudson, Executive Vice President of SEIU Healthcare, the nation's largest healthcare workers union. Yesterday, shareholders of the nation's largest nursing home chain, HCR Manor Care, voted to approve a $6.3 billion buyout by the Carlyle Group, in what will be the largest-ever private equity takeover of a nursing home chain. For more info, visit http://carlylefixmanorcarenow.org/behind-the-buyout/

Hudson continued, "Medicare and Medicaid resources that are intended to support vulnerable Americans are being diverted to the private benefit of wealthy executives and investors. CEO profits cannot come at the price of patient safety and care. The Senate Finance Committee is right to exercise bipartisan leadership to hold the Carlyle Group and other private equity firms accountable for the impact of their actions on people's lives."

Today the Chairman and Ranking Member of the Senate Finance Committee - the committee with oversight over Medicare, nursing homes, and private equity-related issues -- sent letters to the Carlyle Group and other four other private equity firms asking for information related to their ownership and management of nursing homes. Sens. Baucus (D-Mont.) and Grassley (R-Iowa) also sent a letter to the Centers
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SOURCE Service Employees International Union
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