Carlyle to pay $6.3 BILLION for nursing homes

[donsu]

http://www.freep.com/apps/pbcs.dll/article?AID=/20071010/BUSINESS06/710100311/0/NEWS07


In one of the largest purchases in the industry, the Carlyle Group, a private investment group, plans to spend $6.3 billion next week to buy a nursing home chain that has 31 Michigan facilities.

Manor Care Inc. of Toledo has scheduled a stockholders vote at 2 p.m. Oct. 17 on the sale of its network of 500 nursing home, assisted living and rehabilitation facilities. In metro Detroit, many of the facilities operate under the names Heartland. They provide nursing home, assisted living and rehabilitation services to more than 3,000 Michigan residents, most at facilities with the company's Heartland Health Care Center name. Manor Care has 60,000 employees nationwide.
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what? they think nursing homes are a growth industry? they don't buy anything unless it will make more money for them.

[Horse with no Name]

1. My question about this was

did Bush do away with some nursing home regulations that we didn't know it? Hidden in some obscure bill?
You can bet your ass if corporations like Carlyle are getting involved, it is because there has been deregulation somewhere.

[Flabbergasted]

10. Check this out:

http://www.earthtimes.org/articles/show/news_press_release,185215.shtml

[rucky]

12. Estate Tax, maybe?

Most nursing homes "inherit" the assets of their deceased residents.

[Ghost in the Machine]

2. Makes it easier for them to start killing off the sick and elderly... n/t

[CrispyQ]

6. I'll bet you're right. --nt

[formercia]

3. Plenty of severely disabled Veterans to fill them as well.

They are going to milk the fallout from this and future wars for generations.

[donsu]

5. yes indeed

nt

[formercia]

17. Nothing like vertical integration

build weapons in one facility and maintain the resulting human wreckage in another.

[Solly Mack]

4. you can cheat the govt. through nursing homes

bill for treatments/services you don't give, etc.



"Medicaid and Medicare are the largest purchasers of nursing home services, accounting for 60 percent of the $122 billion spent on care in 2005, the most recent year for which figures are available."


http://www.nytimes.com/2007/04/22/health/22nursing.html?_r=1&oref=slogin

and you want to read this too

http://www.nytimes.com/2007/09/23/business/23nursing.html?_r=1&ref=us&oref=slogin

Those investors include prominent private equity firms like Warburg Pincus and the Carlyle Group, better known for buying companies like Dunkin’ Donuts.

As such investors have acquired nursing homes, they have often reduced costs, increased profits and quickly resold facilities for significant gains.

[formercia]

14. Warburg

made their money from the Nazis as well.

[OmmmSweetOmmm]

7. Soylent Green? eom

[JuniperLea]

8. To be fair...

Carlyle has been known to follow baby boomer trends.

Now, if they fire a ton of people and the quality of care goes down while stock goes up due to a drop in expenditures, and they sell quickly, then I'll get all heated about this.

[Solly Mack]

9. see post 4....already happening

[JuniperLea]

13. A former employer... billionaire many times over...

Was heavily invested in all those fund managers. This is no surprise to me at all.

[TahitiNut]

11. Figures. That includes the one my mother was in.

Staff overworked. Furnishings look great. Management sucked.

[Canuckistanian]

15. Cradle to grave - they've got you covered

The boomers are just starting to move into retirement.

In about 10 years they start moving into retirement homes.

[formercia]

18. From the moment of conception

to when they sift through your ashes to look for bits of melted dental amalgam.

[sandnsea]

16. Health care is the ONLY growth industry

Obviously we aren't going to have non-profit health care any time soon if Carlyle is investing.