Fight private equity takeover of nursing home chain

[eridani]

***MEDIA ADVISORY FOR WED OCT. 10***

With care for hundreds of elderly Washington residents at risk, Legislators, Advocates & Caregivers Raise Concerns About Patient Care in Private Equity Takeover of Major Nursing Home Chain


Will Release Letter To Governor and DSHS Urging Action to Protect Vulnerable Residents in Lynnwood, Tacoma, Gig Harbor, Spokane

Resident advocates, community and elected leaders, and workers will raise concerns Wednesday about patient care in the takeover of the nation's largest nursing home chain, HCR Manor Care, by global buyout giant the Carlyle Group. The coalition is calling on the Carlyle Group to put care above CEO profits in the $6.3 billion takeover of Manor Care. There is growing concern that the buyout could come at the expense of seniors, taxpayers, and workers. Manor Care runs four Washington nursing homes in Lynnwood, Tacoma, Gig Harbor, and Spokane.

At the news conference, the coalition will release a letter (attached) from community advocates and Legislators – including the chairs of both Health Care Committees – to Governor Gregoire to take steps to protect residents, workers, and taxpayers including--


--Performing an extensive investigation detailing the impact on residents in Washington State.

--Holding public hearings about the takeover in each of the communities where Manor Care operates a Nursing Home - Tacoma, Lynnwood, Spokane and Gig Harbor.


--Holding a hearing in the State Legislature before the licenses to operate the nursing homes are transferred to the new owners

--Pressuring Carlyle Group and Manor Care to agree to provisions that support quality care in Washington.


--Similar coalition efforts are underway in multiple states where Manor Care has operations, including Ohio, Pennsylvania, Illinois, Michigan, Florida, Maryland, Wisconsin, and Washington State. More info is available at CarlyleFixManorCareNow.org


WHAT: Legislators, Advocates & Caregivers Raise Concerns About Patient Care in Private Equity Takeover of Major Nursing Home Chain

WHEN: 11AM, Wednesday, October 10

WHERE: Capitol Steps, Olympia

WHO: Legislators, Community Leaders and Nursing Home workers

A recent front page exposé by the New York Times detailed how cuts to staffing and operations at nursing homes bought by private equity firms across the country have enriched top executives and buyout firms at the expense of nursing home residents. Read the article here.

http://www.nytimes.com/2007/09/23/business/23nursing.html?_r=2&n=Top/Reference/Times%20Topics/People/D/Duhigg,%20Charles&oref=slogin&oref=slogin

Habana Health Care Center, a 150-bed nursing home in Tampa, Fla., was struggling when a group of large private investment firms purchased it and 48 other nursing homes in 2002.

The facility’s managers quickly cut costs. Within months, the number of clinical registered nurses at the home was half what it had been a year earlier, records collected by the Centers for Medicare and Medicaid Services indicate. Budgets for nursing supplies, resident activities and other services also fell, according to Florida’s Agency for Health Care Administration.

The investors and operators were soon earning millions of dollars a year from their 49 homes.

Residents fared less well. Over three years, 15 at Habana died from what their families contend was negligent care in lawsuits filed in state court. Regulators repeatedly warned the home that staff levels were below mandatory minimums. When regulators visited, they found malfunctioning fire doors, unhygienic kitchens and a resident using a leg brace that was broken.

“They’ve created a hellhole,” said Vivian Hewitt, who sued Habana in 2004 when her mother died after a large bedsore became infected by feces.