FOR IMMEDIATE RELEASE: CONTACT:
October 26, 2007   Julie Eisenhardt, 202-330-3164 (cell)

In letter to the VA, VFW cites concerns about possible staff cuts, care problems following private equity takeover of nursing homes.

WASHINGTON – The Veterans of Foreign Wars of the United States (VFW) added its voices to the growing calling for thorough investigation of the Carlyle Group takeover Manor Care nursing homes, citing serious concerns about possible lapses in the quality of care following the private equity takeover.

Two Congressional committees have already announced hearings into the takeover.  In a letter to the Department of Veterans’ Affairs (VA), the VFW calls for the VA to “play an active role in the investigation.”

“The allegation is that these groups may be intentionally jeopardizing the well-being of their residents by cutting expenses and personnel- sometimes below legal minimum requirements- in order to increase profits,” wrote Robert E. Wallace, Executive Director.  “The Veterans of Foreign Wars of the U.S. shares their concern, especially with the Carlyle Group acquisition of one of your contractors, HCR Manor care…”

With more than 37,000 resident beds, HCR Manor Care, based in Toledo, Ohio, is one of the largest nursing home providers in the country. The Carlyle Group is taking over Manor Care in a leveraged buyout deal worth $6.3 billion, a deal they intend to close by November 7.  The CEO windfalls, fees, and the high level of debt that Manor Care will face as a result of the buyout raise serious concerns for nursing home staff trying to provide quality care, the taxpayers who money helps fund Manor Care’s operations and most importantly for Manor Care residents.

The VFW represents more than 2.3 million veterans and 8,400 posts worldwide.

Background information detailing SEIU’s concerns with the buyout is available at CarlyleFixManorCareNow.org