$186,000,000 windfall were spent on staff
Posted by Patti on August 13th, 2007 / Print This Post
An interesting read:
Reports that Manor Care’s CEO Paul Ormond would personally realize between $118 and $186 million when his company, the largest nursing home chain in the United States, is acquired later this year by a private equity group got us thinking about staffing in nursing homes. Knowing that the federal government has reported that more than 90% of nursing homes do not have enough staff to take care of their residents, we wondered how many nurses and nurse aides could be hired for a year at Manor Care’s nursing facilities with that same money.Using federal wage estimates for nursing home workers, we calculated that Manor Care’s 278 nursing homes could hire an additional 5346 certified nurse aides or an additional 2198 registered nurses if $118,000,000 were spent on staff (19.2 aides or 7.9 RNs at each Manor Care nursing home). If Mr. Ormond’s $186,000,000 windfall were spent on staff, Manor Care could hire an additional 8427 certified nurse aides or an additional 3464 RNs (30.3 CNAs or 12.5 RNs at each Manor Care nursing home).
Like all nursing home chains, most of Manor Care’s revenues come from public programs, Medicare and Medicaid. How should our public health care dollars be spent? One man’s windfall or certified nurse assistants and registered nurses in nursing homes?
August 14th, 2007 at 4:19 pm
Does anyone think this will ever happen? And does anyone think these owners care enough to ever consider this? How about the investors? I wonder, if they really knew what happened in these nursing homes, would they continue to own stocks in the companies? I would not, no matter what the profits. But I’m biased too. Investors probably assume the people, the elderly, are being taken care of and wish to know little more than that.
Hey Kim or Patti, perhaps its time you ladies did a little educating for these people??
August 15th, 2007 at 6:03 am
Cheryl you’ve given me an idea.:idea::idea:
August 15th, 2007 at 8:49 am
You’re absolutely right, Cheryl. I’m an advocate for nursing home reform and feel absolutely ill when I read the salaries of CEOs and other executives in the nursing home industry. I’ve worked in many nursing homes and have seen where these wages come from. Straight off the pain and neglect of their helpless residents. I believe that many investors, especially the high rollers, don’t look beyond the profit margins. I also believe that the investors need to have this information available to them. Ignorance is no excuse for capitalizing on the sick and helpless. We need to get this information out and available to all. In our state, we are pushing for publication of results of nursing home inspections, much like restaurant inspections are published in local newspapers. Nursing assistants are the ones in the know. They are the beating heart of nursing home care. find ways where you can speak anonymously as I know you are under constant threat of losing your jobs if you tell the truth about what is actually going on in your NH. Things are moving forward, especially with the increased interest lawyers have in nursing home abuse. Help them win these cases and get the word out. As you already know, money is the only language that the big nursing home industry understands.
Cheryl, I’d love to hear more about your idea.
August 28th, 2007 at 6:52 pm
As a LPN for over 20 years, and my pay only $1,500.00 more that in 1994 I know the money is NOT going into nursing….CNA’S OR LPN’S……..
September 5th, 2007 at 9:26 am
I don’t really have an idea. I just thought that Patti and Kim should open up a category for INVESTORS to refer to. They need to know what really happens in the average nursing home. Staffing. Supplies. Management problems. Pay. Staff abuse.
Some will be shocked I bet.