A caravan of over 200 healthcare workers organized by the SEIU arrived in Washington DC today to demonstrate outside the Carlyle Group headquarters.
What does that have to do with Jeralyn Merritt’s mom?
Jeralyn’s mom lives in a Manor Care facility. Manor Care is one of the many companies being targeted by private equity firms as profit centers. The New York Times recently ran an article on what tends to happen when PE firms get into the managed health care business looking for profits:
As such investors have acquired nursing homes, they have often reduced costs, increased profits and quickly resold facilities for significant gains.
But by many regulatory benchmarks, residents at those nursing homes are worse off, on average, than they were under previous owners, according to an analysis by The New York Times of data collected by government agencies from 2000 to 2006.
The Times analysis shows that, as at Habana, managers at many other nursing homes acquired by large private investors have cut expenses and staff, sometimes below minimum legal requirements.
Regulators say residents at these homes have suffered. At facilities owned by private investment firms, residents on average have fared more poorly than occupants of other homes in common problems like depression, loss of mobility and loss of ability to dress and bathe themselves, according to data collected by the Centers for Medicare and Medicaid Services.
The SEIU has been waging a campaign against the Carlyle Group for over a month now, trying organize Manor Care’s 60,000 health-care workers and put pressure on the organization to say how care will be affected by the acquisition.
They’re fighting for all of us within a corporate culture grown completely amoral in its acquisitiveness:
Over three years, 15 at Habana died from what their families contend was negligent care in lawsuits filed in state court. Regulators repeatedly warned the home that staff levels were below mandatory minimums. When regulators visited, they found malfunctioning fire doors, unhygienic kitchens and a resident using a leg brace that was broken.
“They’ve created a hellhole,” said Vivian Hewitt, who sued Habana in 2004 when her mother died after a large bedsore became infected by feces.
Habana is one of thousands of nursing homes across the nation that large Wall Street investment companies have bought or agreed to acquire in recent years.
As anyone who stopped by Paul Krugman’s book salon chat over the weekend noted, strong unions mean a strong middle class. The unions are also one of the only institutions with the strength (and willingness) to put real pressure on corporations like the Carlyle Group and stop them from picking at the bones of the sick and the elderly for the sake of a robust balance sheet. And in the wake of their efforts, last week the Senate Finance Committee said they would hold oversight hearings on nursing homes taken over by private equity.
Brave New Films has been covering the caravan by the Manor Care Shareholders meeting to express concern about the Carlyle Group’s buyout.
As Jeralyn notes, elder abuse is a crime. And I don’t know about you, but I really wouldn’t want to depend on the kind hearts and good will of the Carlyle Group to make sure me or my family were taken care of.
More info here.



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Jane!
How soon before the corporatist ghouls start implementing the Soylent Green option in dealing with our nations’ senior citizens?
-GSD
Jane, Thanks for highlighting this important issue. The Times article was heart breaking. At some point maybe the American people will stand up and say enough. If there were a true Value Voters debate this would of been highlighted.
For profit nursing homes
For profit intelligence agencies
For profit schools
For profit prisons
For profit utilities
For profit armies
For profit hospitals
Everything for profit, nothing for the common good of all.
I want my country back.
Isn’t Bush I involved in Carlyle Group? Is it the same one?
A Profit Healthcare system is amoral. That someone should profit off of the illness of others is just plain sick.
My favorite healthcare employers were the not-for profit organizations where quality patient care was the goal and the took care of their employees.
MsAnnaNOLA @ 5
Yes.
From the Carlyle Group:
Our mission is to be the premier global private equity firm, leveraging the insight of Carlyle’s team of investment professionals to generate extraordinary returns across a range of investment choices, while maintaining our good name and the good name of our investors.
Oklahoma kiddo @ 8
My bold
I think that’s a battle they’ve lost. Kinda hard to maintain the good name of the company and investors when you’re screwing everybody in sight.
It’s not just Republicans that make up the Carlyle Group.
Meet the Carlyle Group
http://www.hereinreality.com/carlyle.html
1480 KPHX Radio is discussing the Phoenix New Times arrests right now
Oklahoma kiddo @ 10
Appreciate that link Oklahoma. Thanks.
MsAnnaNOLA @ 5
Yep
MsAnnaNOLA @ 5
Bush 41.
The Evil Carlyle Group bought a controlling interest in my wife’s company — The IT Group — and sucked it dry until it went into bankruptcy, a micro Enron thingy all about pumping and dumping stock. The IT Group got bought out of BK by The Shaw Group, and my wife was promoted to Director of Quality for their newly acquired environmental division (essentially her former company). Now, they (Shaw) are going the route of trying to be major DC contractor players (lotta military shit here and in the Middle East). One upshot is the neutering of the environmental division. She just got RIF’d, as have a lot of her executive colleagues.
They put a freeze on employee stock trading last week — right after CEO Jim Bernhard sold about 70 million dollars worth of his. She now con’t unload hers until after her last day. It’s been falling since last week.
Sux. All of these companies.
Jane,
Your column immediately set off alarm bells for me, as my 89-year old Mother is in a retirement center health care facility. So I did some googling, and found that her health care facility has a contract with SEIU!
Thanks for the heads up!
Bob in HI
Hi Jane,
They say you can make any Nursing Home into a better one with frequent unannounced visits.
Anyway, I came across this in my work:
https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2004cv0023-9
While Rule 60(b)(6) “gives the district judge broad latitude to relieve a party from a
judgment,” Richardson v. Nat’l R.R. Passenger Corp., 49 F.3d 760, 765 (D.C. Cir. 1995), such
latitude “should be only sparingly used,” Good Luck Nursing Home Inc. v. Harris, 636 F.2d 572,
577 (D.C. Cir. 1980).
This is real.
Why in the Wide, Wide World of Sports would anyone call a nursing home The Good Luck Nursing Home?
In case you haven’t heard, 60 protesters arrested by the Capitol today:
http://www.cnn.com/2007/POLITI…..index.html
BobbyG @ 14
With realities like this, you have to wonder why anyone falls for the Bush good-guy act.
Jackie Kennedy, “They’re trying to kill us all”.
Wonder who “they” is/was.
lolzed
Tomorrow on the Diane Rehm show
11:00Long-Term Care
Guests
Jeanie Kayser-Jones, professor of gerontological nursing & medical anthropology and founder of the John A. Hartford Center of Geriatric Nursing Excellence at the University of California, San Francisco
Paul R. Willging, associate director for program applications at Johns Hopkins University’s Center on Aging and Health, and the School of Medicine’s Division of Geriatric Medicine and Gerontology; former president and CEO of both the Assisted Living Federation of America, and the American Health Care Association
Howard Gleckman, senior research associate at The Urban Institute; visiting fellow at the Center for Retirement Research at Boston College; and author of a forthcoming book on long-term care.
Meet the Carlyle Group
with ties to the Trilateral Commission
Ah, what to do? Hate to keep asking. Even non-profits are profitable for some executives who get high six figure salaries. One would think even the greediest entrepreneur won’t stoop to abusing the elderly, but that doesn’t seem to be the case.
Evolution anyone?
I wish I could find out more about what the Democratic Leadership Council does.
My 87 year old mother is in a managed care facility in South Carolina and while I am comfortable with the care she has been given I am appalled at the cost. She is one of the most reasonably priced which was available and they just went up to $2100/month for a small bedroom and 3 meals a day. Unfortunately my mother suffers from a relatively mild dementia, but it is not terribly debilitating.
In the past couple of years I have begun to make my feelings about my end of life care known to my children and they understand that if I find my mental capacities deteriorating significantly then I have no hesitation about drinking the Hemlock.
I am ashamed of our entire healthcare industry!
Soylent is right around the corner.
Matthews on “Hardball” wants to know if the U.S. should bomb Iran now.
Hillary Clinton. You are a Team Leader in the Democratic Leadership Council. What exactly does this group do?
Can you say criminally negligent homicide?
If we had an AG like Eliot Spitzer, the chairman of Carlyle would soon be making like Robert Vesco.
There are other ways to protest against the Carlyle Group.
Current senior management:
David M. Rubenstein, Co-Founder and Managing Director of The Carlyle Group.
Board of Directors or Trustees of Duke University, Johns Hopkins University and the University of Chicago.
Daniel A. D’Aniello, Founding Partner and Managing Director of The Carlyle Group.
Trustee, Syracuse University.
tw3k @ 20
tw3k,
Was it you asking about Ganado way back downstairs? If so, I left you a reply in EPUland way down there.
Bob in HI
allan_in_upstate @ 30
My bold added..
Advocates of some shocking doctoring..)
This is a very sore subject for me.
My Grandmother at 93 , fell and shattered her hip. She has lived in the same place for over fifty years, a small coastal town.
She wound up in a nursing home,no one in my family lived closer than two hundred miles away.
It was a nightmare.
Come to find out, it was the same one my other Grandmother had died in twenty five years earlier.
Also the same one my Mother worked at before She died.
I knew the reputation of this place was very bad and told my family about it.
My aunt and uncle would go down every weekend to check on her and I went once.
The violations we saw were horrendous.
Understaffed, people laying in their own body waste because no one would come help them to the bathroom,on and on and on.
It got so bad I thought they were literally TRYING to kill her.
Finally enough was enough, My aunt flew into the small airport unannounced, called an ambulance and had her taken to the emergency room. from there to an awaiting flight and brought her up here to one close by that had a good reputation
For Profit homes are deathtraps.
Oklahoma kiddo @ 24
Do any of these help?
* The AEI, the PNAC & the DLC
* Democratic Leadership Council (Wikipedia)
* Official DLC website
Bob in HI
new post upstairs
SEIU is an organization made up of very brave people. This is an excellent example of the “ordinary” working person standing up to the big bad Carlyle Group. There is nothing ordinary about this kind of bravery when you are counting on a salary to pay life’s basics and support your children and assist your beloved parents and grandparents.
Again, thank you, Jane, for holding them up as an example for me to remember what really matters in supporting a cause. SEIU members are an inspiration.
So, the New York Times echoes the claim that investors are looking for profit in nursing home care. This much I know: If investors are looking for profit, they certainly won’t find it in the New York Times Co. Morgan Stanley dumped their $183 million holding in NYT in one lot.
Second fact those cheering on the SEIU in their campaign against Carlyle need to keep in mind: 5.5% of Carlyle is held by the California Public Employees Retirement System, or CALPERS. That’s right, many thousands of public workers in California are wealthier today than ever before courtesy of Carlyle leveraged buyouts.
Hi Jane, Thanks for writing about this.
One of the reasons I’m worried about the Carlyle takeover is that Manor Care has been pretty good. I just want it to stay that way.
Profit is the point of the takeover. Carlyle has issued a press release promising not to cut care. I’m just hoping that increased media attention will keep them to their word.
This is so important, and even the most pricey places often have serious problems/complaints. Staff are often the ones who know how bad things are and feel the stress of not having enough folks to do the work. Union protection here would be great; staff would be much more free to speak out. Not to mention that staff turnover is a nightmare because the pay is so low and the work so hard. Some of those folks are saints.
Thank you OKiddo. Rigorous Intuition has had many good posts on this octapus.
FDL needs to do more on Carlyle – many people don’t know what they are.