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Caving to Calls for Action on Quality, Carlyle-ManorCare Instead Appoints Committee

WASHINGTON , DC -- In response to scrutiny from residents, lawmakers, and advocates, Carlyle in early May announced the formation of a three member "independent" committee to advise the company regarding quality of care. Carlyle-ManorCare's decision to refer the issue of quality to a committee falls far short of the real and immediate action needed to improve quality of care for its residents.

Although Carlyle describes its committee as "independent," committee members include Gail Wilensky, who served on the ManorCare Board of Directors as recently as last year and who received a one-day windfall of more than $1 million as a result of the transaction, according to ManorCare's SEC filings. A few months ago, Wilensky also appears to have served on both the ManorCare Board and as Vice-Chair of the Maryland Health Care Commission-- a state regulatory body that issued rulings Carlyle needed to complete its buyout of ManorCare. SEIU does not know whether Dr. Wilensky recused herself from Commission proceedings related to Manor Care.

The Carlyle-ManorCare press release lauding the "independence" of its new committee makes no mention of the connections between Wilensky, the company, and the Carlyle buyout.

Advocates point to those connections – and the failure to mention them -- as further evidence that Carlyle does not intend to live up to the full spirit of promises it made during the Manor Care buyout. Carlyle had promised regulators as part of the buyout approval process that it would appoint an independent committee, but Wilensky’s inclusion makes this committee fall short of the mark.

Carlyle has already failed to live up to a promise from an October 27, 2007 “Quality Patient Care Pledge” to continue providing quality care. Since the buyout, at least two homes have had increases in the number of patient care deficiencies during their most recent regular survey inspections, and one home, Heartland Health Care of Jackson, MI, had a 260% increase in deficiencies compared to before the buyout. Furthermore, when workers at a Towson, MD home asked for a fully funded training program to improve their skills, Carlyle-Manor Care fought back against the workers’ request .

The buyout raised concerns of transparency, accountability, and quality that lawmakers are now moving to address. The Nursing Home Transparency and Improvement Act (S2641) in the Senate and forthcoming legislation in the U.S. House seek to address problems with accountability and disclosure that private equity buyouts have caused. The legislation has the support of a wide range of quality care advocates including AARP, the Alzheimer’s Association and the Leadership Conference of Aging Organizations .

Posted on Monday, May 19, 2008 at 05:11PM by Registered CommenterCarlyle Fix ManorCare Now WebManager | Comments Off

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