investment companies have made it very difficult for plaintiffs to
succeed in court and for regulators to levy chainwide fines by creating
complex corporate structures that obscure who controls their nursing
homes ... The Byzantine structures established at homes owned by
private investment firms also make it harder for regulators to know if
one company is responsible for multiple centers. And the structures
help managers bypass rules that require them to report when they, in
effect, pay themselves from programs like Medicare and Medicaid."
-- Increased Profits for Private Equity Firms -- Private equity firms
"have acquired nursing homes, they have often reduced costs, increased
profits and quickly resold facilities for significant gains ... Those
homes, on average, were 41 percent more profitable than the average
Read the full article on the New York Times website.
In recent years, large private investment groups have agreed to buy 6 of the nation's 10 largest nursing home chains, containing over 141,000 beds, or 9 percent of the nation's total. Private investment groups own at least another 60,000 beds at smaller chains and are expected to acquire many more companies as firms come under shareholder pressure to sell, according to the New York Times.
Pending Carlyle Takeover of HCR-Manor Care Largest-Ever
With more than 37,000 resident beds nationwide, HCR Manor Care, based in Toledo, Ohio, is one of the largest nursing home providers in the country. Carlyle has thus far refused to discuss specific plans for the reorganization and operations of Manor Care, but the company has indicated an interest in closing the deal by the end of the year and the shareholder vote on the merger is scheduled for mid-October.
During the most recent survey cycle, Manor Care's M
|SOURCE Service Employees International Union|
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