Broad Coalition of Quality Care Groups Call for More Accountability, Transparency in Nursing Homes

WASHINGTON, DC -- The nation's largest healthcare workers' union testified before Chairman Stupak's (D-MI-1) House Energy & Commerce Oversight Subcommittee today, calling for Congress to stand up to the powerful and profit-hungry nursing home industry and pass legislation that would improve the quality of care by ensuring that residents and taxpayers know who owns nursing homes, who is responsible for care at them, and how taxpayer funds are being used. 

Senators Grassley (R-IA) and Kohl (D-WI) have already introduced legislation in the Senate, the Nursing Home Improvement and Transparency Act (S2641) that would take similar steps.  A wide coalition is working to pass this bill, including AARP, the Alzheimer's Association and the Leadership Council of Aging Organizations.   The industry is reportedly trying to block the legislation.

"We must not fail to protect our seniors and we cannot allow the bad actors in the for-profit nursing home industry to continue to let our seniors down and block attempts to pass meaningful reform,"said Tom DeBruin, former nursing home caregiver and current President of SEIU Healthcare Pennsylvania.  "Americans want to see Congress take action and with S2641 and the Stark-Schakowsky bill soon to be introduced, Congress has a great opportunity to do just that.  We urge you to seize it." 

Movement on the issue closely follows the Carlyle Group's buyout of ManorCare nursing homes, one of the largest chains in the nation.  The buyout raised concerns of transparency, accountability, and quality that lawmakers are now moving to address.  Carlyle's buyout included up to $5.5 billion dollars in debt, which could cost up to an estimated $400,000,000 in debt service in the first year.  Lawmakers and advocates have questioned how Carlyle will service that debt while fixing care problems and improving staffing at the nursing homes.

Carlyle also told regulators they planned on restructuring the company, creating several layers of LLC between the parent company and the nursing home operator.  This makes it difficult for regulators and residents to hold the company accountable for care problems, shielding them from liability.  The proposed legislation would begin to address this kind of matryoshka doll structure problem.

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