…cutting other budget items at the expense of patient care
Posted by Patti on October 31st, 2007 / Print This Post
Florida state representative Pete Nehr has penned an op/ed that is very timely.
Part of it:
As an elected state representative, one of my most important duties is to provide for the safety of my constituents. As you read this, the largest nursing home chain in the United States, HCR Manor Care, is being purchased by the Carlyle Group, a private equity firm that owns Dunkin’ Donuts, Baskin Robbins and Hertz Rental Cars. The details of this acquisition are particularly worrisome. Carlyle will pay for the company by loading it down with $5.5-billion in debt. To pay back this debt, Manor Care will have strong incentives to do what 60 percent of other nursing homes purchased by private investment firms have done: cut costs by significantly reducing staffing, sometimes below federally recommended levels, and cutting other budget items at the expense of patient care.At the same time, Manor Care’s executives will be making up to $250-million in this deal and the Carlyle Group stands to make up to $60-million.
He’s written much more so make sure you check it.
November 11th, 2007 at 6:48 pm
This same type of acquisition is why I left a facility. Its terrible how these large corporations are purchasing facilities, downsizing staff, cutting costs at the cost of the residents care.
However, because of their business ethics, it is making it easier for me, a new business owner, to have full census.
The consumers are aware of what is going out there.