Overdoses, bedsores, broken bones: What happened when a private-equity firm sought to care for socie

[Eugene]

Source: Washington Post

Overdoses, bedsores, broken bones: What happened when a private-equity firm sought to care for society’s most vulnerable

By Peter Whoriskey and
Dan Keating November 25 at 9:04 PM

-snip-

Under the ownership of the Carlyle Group, one of the richest private-equity firms in the world, the ManorCare nursing-home chain struggled financially until it filed for bankruptcy in March. During the five years preceding the bankruptcy, the second-largest nursing-home chain in the United States exposed its roughly 25,000 patients to increasing health risks, according to inspection records analyzed by The Washington Post.

The number of health-code violations found at the chain each year rose 26 percent between 2013 and 2017, according to a Post review of 230 of the chain’s retirement homes. Over that period, the yearly number of health-code violations at company nursing homes rose from 1,584 to almost 2,000. The number of citations increased for, among other things, neither preventing nor treating bed sores; medication errors; not providing proper care for people who need special services such as injections, colostomies and prostheses; and not assisting patients with eating and personal hygiene.

Counting only the more serious violations, those categorized as “potential for more than minimal harm,” “immediate jeopardy” and “actual harm,” The Post found the number of HCR ManoCare violations rose 29 percent in the years before the bankruptcy filing.

The rise in health-code violations at the chain began after Carlyle and investors completed a 2011 financial deal that extracted $1.3 billion from the company for investors but also saddled the chain with what proved to be untenable financial obligations, according to interviews and financial documents. Under the terms of the deal, HCR ManorCare sold nearly all of the real estate in its nursing-home empire and then agreed to pay rent to the new owners.

Taking the money out of ManorCare constrained company finances. Shortly after the maneuver, the company announced hundreds of layoffs. In a little over a year, some nursing homes were not making enough to pay rent. Over the next several years, cost-cutting programs followed, according to financial statements obtained by The Post.

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Read more: https://www.washingtonpost.com/business/economy/opioid-overdoses-bedsores-and-broken-bones-what-happened-when-a-private-equity-firm-sought-profits-in-caring-for-societys-most-vulnerable/2018/11/25/09089a4a-ed14-11e8-baac-2a674e91502b_story.html

[Turbineguy]

1. The looters

that Ayn Rand did not warn us about.

[Gidney N Cloyd]

2. I was told ManorCare was a terrible operation-- even before 2011.

Add vulture capitalism to the picture and I can't imagine the kind of hellhole you're asking for.

[Auggie]

3. Geriatric care and capitalism do not -- will not -- ever mix

When given the option between choosing a nicer looking facility that was publicly-traded and a sole-proprietor facility that was rough around the edges, I chose the sole-proprietor facility. Never regretted it -- Mom (Alzheimer's) has received great care. The for-profit, publicly-traded companies have bottom lines to protect. It shows in the number of staff they hire and the quality/experience of that staff. Find out who owns the facility before committing, and see if they're publicly-traded or owned by a hedge fund. Mom/Dad gets better care and you sleep a little easier.

[Hoyt]

4. I wish poor/inadequate nursing home care were limited to ManorCare, etc., but it's not.

Just about all skilled nursing homes -- however they are run -- have severe issues. I'm sure ManorCare homes are awful, as are most others. There are assisted living facilities that aren't bad if one can afford them. But, true skilled nursing homes -- where most patients aren't going home -- are quite depressing.

[exboyfil]

5. My grandmother was in a nursing home

for ten years. It was a not for profit with a board controlled by local medical, education, business, and religious leaders. The board receives no compensation.

She was on Title 19 LTC Medicaid and received excellent care. When you think that it takes two CNAs to do some of the most basic activities (showers, going to the bathroom, etc), you can understand how expensive it is and how much staff is required.

Her food had to be specially prepared (pureed) and she had to be hand fed. Trust me the hospital could not get the feeding right. Going to the hospital was almost a death sentence for my grandma. Eventually her inability to swallow was what killed her at 95.

The CEO made $120K, and the CFO made $100K. This in on $16M in revenue.

Without the numerous volunteers, I don't think the nursing home could make it. It would definitely impact the lifestyle of the residents and possibly their level of care.

There really is little room for corporations to pull profits off of this business model.

Make sure to pull the Form 990s on any nursing home you are thinking about utilizing.