Ahead of the Bell: Nursing Home Hearing |
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Thu, 15 Nov 2007 12:15
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WASHINGTON (AP) - The Carlyle Group's buyout of the nation's largest nursing home chain will be the center of debate on Capitol Hill Thursday, though the scrutiny from lawmakers is unlikely to thwart the deal's completion.Washington-based Carlyle is expected to close its $6.3 billion purchase of Manor Care Inc. within the month. Based in Toledo, Ohio, Manor Care has more than 500 nursing and rehabilitation centers across the country.But critics, including a labor group that represents nurses, have waged a nationwide campaign against the buyout on the grounds that Carlyle may cut staff, reducing the quality of care for seniors.Representatives from Service Employees International Union are scheduled to testify before the House Ways and Means Health Subcommittee and the Senate Special Committee on Aging.Democrats on both committees are investigating the effects of private equity-ownership on nursing homes. Lawmakers point out that the federal government's Medicare program is the largest single purchaser of nursing services in the U.S.In recent years, nursing homes have become a popular acquisition target for private equity firms, which frequently reorganize and streamline the companies they purchase.Nursing home operator Genesis Healthcare Corp., based in Kennett Square, Pa., approved a buyout offer in May. And shareholders of Scarsdale, N.Y.-based National Home Health Care Corp., agreed to be acquired in June.Manor Care and Carlyle have pledged to maintain staffing levels and management at their nursing homes. The companies have also charged the SEIU with raising undue concerns over the buyout to recruit more Manor Care employees. The union currently represents just over 1,000 of the company's 60,000 workers.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Manor Care's purchase questioned in Fla. 