FOR IMMEDIATE RELEASE 
December 10, 2007

CONTACT: Julie Eisenhardt      
202-330-3164         

As Carlyle hopes to close the deal to buy Manor Care…

Three States Hold Hearings, Meetings to Examine Whether Private Equity Hurts Quality in Nursing Homes

WASHINGTON, DC - As The Carlyle Group, a private equity buyout firm, faces more scrutiny in its drive to take over Manor Care nursing homes, this week regulators or lawmakers in three states will look more closely at the issue of whether private equity ownership hurts residents.  This brings the total number of states who have held or scheduled meetings or hearings up to six.

West Virginia's Health Care Authority is holding a hearing on the 14th to revisit whether Carlyle's certificate of need meets specific requirements.  HCR Manor Care's Vice President Rick Rump has told reporters that the Carlyle buyout cannot go through until the certificates of need for the seven West Virginia nursing homes are approved.

Illinois' Department of Public Health is holding a public meeting on Wednesday to gather information on what the rules should be for transfer of ownership of nursing homes.  This meeting came about in light of the applications to transfer ownership of the 25 Manor Care homes in the state.  Lawmakers and advocates alike are demanding a more thorough review process before applications are approved.

In Florida, the Senate Health Regulatory Committee will look at the implications private equity ownership has on the quality of nursing home care.  The Committee has called on the Agency for Health Care Administration's Secretary Agwunobi to answer questions.  Nursing home caregivers, family members, and advocates will testify during public comment about concerns with the Carlyle Manor Care deal.

Other states have already held similar hearings.  On December 6, Michigan legislators met with a room packed full of nursing home caregivers and family members to look at how nursing home ownership impacts the quality of care and speakers questioned whether the Carlyle buyout would hurt Manor Care residents.  Lawmakers in Wisconsin and Illinois held hearings on November 26 and Pennsylvania lawmakers hosted a hearing November 13 to look into these issues as well, and Maryland lawmakers have announced they will hold hearings, though no dates have been released.

In a 2001 study prepared for the Centers for Medicare and Medicaid Services, experts identified a staffing threshold below which quality of care was compromised.  At many homes, Manor Care staffing does not meet that threshold.  Residents, family members, and caregivers are calling on regulators and lawmakers to make sure the Carlyle buyout will make care better and increase staffing to expert-recommended levels.