Tapping Into Nursing Homes Can’t Be Tapped Out
Author
Thomas Wiest
CEO, Aspirience Home Care
I’m sure this is not news to anyone but, The Carlyle Group, a private-equity investment firm with investments in business sectors ranging from aerospace to telecommunications, is about to buy its way into Ohio’s nursing home market.
A cash offer to buy HCR Manor Care, the owner of some 500 nursing homes, assisted-living facilities, rehabilitation centers and hospice and home-care agencies in 30 states, including Ohio, received Manor Care shareholders’ approval this week.
The deal is getting resistance, especially from the Service Employees International Union, which has launched a nationwide campaign to get Carlyle to guarantee that if the homes change hands, the new owners will improve care and staff levels.
What a great idea!
A recent investigation by the New York Times lends an extra degree of credibility to the SEIU’s concerns. The newspaper found that private equity firms, which have bought into the nursing home industry in a big way since 2000, show a disturbing tendency to manage their properties with a great deal more concern about the bottom line than about proper staffing and patient care.
The Times also found that once they’ve gained control of a nursing home chain, private-equity firms use intricate management structures to insulate themselves from liability when things go wrong. In fact, it’s often hard to tell whose nursing homes they are.
Now comes Carlyle, with its plans for Manor Care and its 44 homes in Ohio, a state where the nursing home industry already has one of the most powerful influences.
State nursing home regulators should turn a stern gaze on the quality of care given at homes bought by private equity firms. Decreases in the level of staff, something Manor Care’s current ownership says will not happen, must be treated as cause for immediate concern.
Taking care of aging people who can no longer live independently is a big business, and it’s only going to get bigger as the baby boom generation goes deeper into its twilight years. But those who profit must be held accountable for the level of care they provide.
There’s no reason why private equity firms can’t do the job right. But like other nursing home owners, they’re going to have to be watched closely and constantly by regulators and residents’ families, to keep them honest.
It’s important to know, Aspirience Home Care can help you with your home care options by keeping your loved ones where they are most comfortable and safe at home.