PA State Lawmakers to Investigate Carlyle Takeover
Posted by Patti on October 12th, 2007 / Print This Post
State lawmakers in PA are going to investigate the proposed buy out of Manor Care nursing homes to Carlyle Group:
HARRISBURG - Two northeastern lawmakers called on state health officials Wednesday to investigate a planned corporate takeover of the largest nursing home chain in Pennsylvania.Reps. Robert Belfanti, D-Northumberland, and Todd Eachus, D-Butler Township, as well as House Majority Leader Bill DeWeese, D-Greene, raised concerns about the future well-being of residents at 46 Manor Care nursing homes in Pennsylvania, including Hampton House in Wilkes-Barre, if the sale to private investment firm Carlyle Group goes through. Manor Care stockholders are scheduled to vote Wednesday on the $6.3 billion deal.
In a joint letter to Gov. Ed Rendell, the lawmakers said the Health Department ought to withhold action on re-licensing the Manor Care homes under new ownership until it has examined the potential impact of the takeover on resident care and has given the public an opportunity to comment.
At a Capitol press conference organized by the Service Employees International Union, Mr. Belfanti said nursing home residents and employees as well as state taxpayers deserve a say on the takeover. Taxpayer Medicaid and Medicare dollars go to support residents in nursing homes, he added.
“These people (residents) depend on nursing home care for their quality of life,” said Mr. Belfanti. “Millions of Pennsylvanians are paying for the care in these nursing homes.”
But it might not amount to much:
The Health Department typically takes a month to review re-licensing applications, said spokeswoman Stacy Kriedeman. The main emphasis is to determine if the new owner is a responsible party. Carlyle has yet to submit any relicensing applications, she added.But the department has no plans to include a formal public input process, as the lawmakers requested.
“People are free to provide comment,” added Ms. Kriedeman. “Change of ownership is not a public process. It never has been. We can’t alter the rules based on who the company is.”
I say, when government funds are used to pay for services provided by nursing homes, this should be a very public process. It’s OUR money that is very apt to be wasted here- at the expense of elderly nursing home residents who reside in Manor Care
facilities. Somehow the laws need to change on this.