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Nursing Home Sale Scrutinized

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The Associated Press

Published: November 9, 2007

TALLAHASSEE - Some Florida lawmakers and a union are questioning a private equity firm's pending purchase of the nation's largest nursing home chain, demanding answers about how it will affect the 3,000-plus residents in the chain's 29 homes in this state.

The lawmakers and the Service Employees International Union are asking that state regulators closely examine Carlyle Group's plan to take over Manor Care Inc. The $4.9 billion buyout, which has been approved by Manor Care shareholders, also is being examined by officials and lawmakers in other states.

Carlyle owns Dunkin' Donuts and Hertz, but its only health care-related venture is Lifecare, a nationwide chain of 21 long-term care hospitals.

Florida's Agency for Health Care Administration licenses nursing homes, so it could block the company's ownership of Florida homes. The agency is reviewing the plan.

The SEIU, which represents many nursing home workers, has started a nationwide campaign to raise concerns about whether Carlyle would cut back on patient care, partly because the purchase will be financed heavily by debt. The SEIU represents about 1,100 of Manor Care's 60,000 employees.

"How is the big Carlyle Group going to be able to repay the huge debt they are incurring and not have to do some reshuffling, some layoffs or something?" asked Maria Cristina Sanchez, a nurse and SEIU member. She does not work for Manor Care, but her mother lives in a Manor Care nursing home near Fort Lauderdale.

State law has minimum requirements for direct patient care by nurses and nursing assistants, but other support staff, such as those who lead activities, might be cut, Sanchez fears.
Manor Care officials say Carlyle has promised to maintain the homes' quality of care, and note the Toledo, Ohio-based company's top management will remain.

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