Legislators to discuss nursing home sale
November 8, 2007
BY PATRICIA ANSTETT
FREE PRESS MEDICAL WRITER
Federal and state legislators Wednesday announced plans to conduct hearings into the pending sale of 28 Michigan nursing homes to a private-equity firm.
The Carlyle Group plans to spend $6.3 billion to buy a network of 500 nursing homes, assisted living and rehabilitation facilities and hospice and home care programs owned by Manor Care Inc. of Toledo. Manor Care has 60,000 employees nationwide. In metro Detroit, many of the facilities operate under the name Heartland.
U.S. Rep. John Dingell, D-Dearborn, and state Rep. Kathy Angerer, D-Dundee, said Wednesday they have serious concerns about the sale. "Many homes already have questionable standards," Angerer said, in a media telephone briefing. "Problems ... won't be solved when they transfer ownership to private-equity firms." In the past two days, Angerer asked the Michigan Department of Community Health to hold up approval of the license transfer.
The department has granted approval to transfer certificate of need applications to the Carlyle Group, but is aware of the legislators' concerns and will carefully review the transfer of the 28 licenses, said T.J. Bucholz, spokesman for the department. Any uncorrected violations could affect the decision, he said.
Rick Rump, a spokesman for Manor Care, said the Michigan facilities have fewer deficiencies than the state's average. For a 12-month period ending September 30, the 28 facilities had 7.4 deficiencies, compared with a state average of 8.7.