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The Michigan Messenger going forward

By Staff Report | 11.16.11

I am writing today to announce the closure of the Michigan Messenger. After four years of operation in Michigan, the board of the American Independent News Network, has decided to shift publication of its news into a single site, The American Independent at Americanindependent.com. This is part of a shift in strategy, towards new forms [...]

Colorado-based abstinence program provided false and misleading information to Michigan students

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By Todd A. Heywood | 11.16.11

An abstinence-only presentation provided to numerous school districts in Calhoun and Eaton Counties in October of this year provided false and misleading information to students about HIV, experts allege.

Class action lawsuit filed against MERS over unpaid taxes

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By Todd A. Heywood | 11.15.11

Two county registers of deeds filed a class action lawsuit Monday on behalf of Michigan’s 83 counties alleging that the Mortgage Electronic Registration Services owes millions of dollars in property title transfer taxes.

Schuette fights important mercury regulations

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By Eartha Jane Melzer | 11.14.11

Despite evidence of the impact of mercury on children and public health, Michigan Attorney General Bill Schuette last month joined with 24 other state attorneys general in filing a lawsuit to scuttle new EPA regulations that would reduce mercury emissions from power plants.

Michigan House approves bills to soften Carlyle Group takeover of Michigan nursing homes

By Todd Spencer | 09.19.08 | 1:44 pm
(Photo: RebelBlueAngel via Flickr.com)

(Photo: RebelBlueAngel via Flickr.com)

In December of last year the Carlyle Group, the most powerful private equity firm in the country, acquired 28 nursing homes in Michigan when it purchased large-scale operator HCR Manor.

The purchase drew concern from politicians, health care unions and advocates for the elderly because of a New York Times story that had run three months earlier detailing the harm that had come to patients across the country as investor-driven entities such as Carlyle increased their margins by reducing nurses and supply budgets.

Michigan Messenger published a series of stories on the purchase and the fight to stop it.

On Wednesday — some nine months after the state allowed the purchase to go through in December — the Michigan House, in what is being described as a bipartisan effort, passed a package of eight bills designed to make it easier for patients, their families and government regulators to find out answers and to levy complaints about care in Michigan nursing homes.

Speaking of the legislation, Sarah Slocum, the ombudsman for the Michigan Office of Services to the Aging, who receives queries and complaints from nursing home staff, patients and concerned family members, describes the package passed Wednesday as having teeth. “Not necessarily sharp teeth,” she told Michigan Messenger, “but teeth.”

The bills contain nothing that would undo the sale or ban future ones like it, she says. “It certainly still allows for the purchase of nursing homes by large equity companies, it still allows flipping and it certainly still allows nursing homes to be run for profit. None of that would change under the bills.”

Effort to raise accountability, create transparency, offer voice to citizens

But the legislation would, she explains, grant citizens the ability to speak at a public hearing before any such purchases were approved in the future by state regulators.

Slocum explained: “If I had an aunt in a nursing home in Ohio whose home was purchased by Company X and my aunt had a terrible experience after that purchase, and if Company X wanted to buy a nursing home my mother was in here in Michigan, then I would have a chance to raise that concern [to regulators] before the purchase had final approval.”

The bills, if passed by the Michigan Senate and signed by Gov. Jennifer Granholm, would also make it easier for families and authorities to know whom to contact as the responsible party for any given nursing home.

As state Rep. Kathy Angerer, chair of the House Health Policy Committee, explained to Michigan Messenger in February, the true direct ownership of nursing homes is often hard to pin down.

“Right now the owners of long-term nursing care facilities are nameless and faceless. The building is owned by one entity, the property by another, the staffing comes from a service, the food service comes from another company. And when a patient’s family has a concern they don’t know who to go to.”

In direct response to that very problem, one of the bills passed would “require nursing homes to conspicuously post the names and contact information of their owners and key management staff.”

How things have been at Michigan’s 28 Carlyle Group owned homes since the purchase

We asked Slocum for her assessment on the level of care at the formerly Manor Care nursing homes, since purchased and run, if indirectly, by the Carlyle Group.

“There hasn’t been a dramatic shift [in the quality], but I do know of some families and at least one staff person who called and said that since last fall there has been a reduction in staffing and a reduction in resources. I think things have not gotten hugely worse [due] in great part to the publicity it’s received and residents are benefiting from that publicity and scrutiny. And there is certainly no evidence of things getting better [under Carlyle Group ownership].”

This effort at regulation now makes its way to the Republican-controlled Senate, where free market philosophies frown on government intervention in business.

When asked about the conventional wisdom among stakeholders such as herself about the package’s chances in the Senate, Slocum said, “There are people worried about that, but I’m very hopeful. We have to make sure they understand what these bills would do for the [nursing home] residents in their districts.”

Comments

  • gpawelski

    What do sewer sludge and nursing homes have in common?

    Washington, DC-based Carlyle Group owns Synagro Technologies, the company that processes municipal waste products, transports the resulting “sewer sludge” and distributes it for land application. Residents from around Pennsylvania have been calling for the expanded testing of Synagro sewer sludge and public reporting on its toxicity and disposal. Communities don't know everything that is in the sludge dumped on nearby lands. Without more information, there are possible health effects and diminished quality-of-life issues.

    Concerns about the safety of Synagro sludge have intensified since the company's April 2007 buyout by The Carlyle Group. By taking Synagro private in a leveraged buyout last year, Carlyle is able to avoid requirements that Synagro provide federal agencies with certain information about its business practices and avoid publicly disclosing the existence of regulatory inquiries or legal complaints against the company resulting from health hazards caused by Synagro products and product distribution.

    This has been happening with The Carlyle Group's take-over of Manor Care nursing homes earlier this year. Manor Care's restructure could obscure ownership and make it more difficult to regulate care. You can't see how they are wasting money, short-staffing, under-paying workers, or understand all the intricate inter-relations they have with supposedly outsourced services such as therapy.

    All 46 Manor Care nursing homes in Pennsylvania staff below a standard recommend in a Centers for Medicare and Medicaid Services (CMS) study as putting residents at risk (Schnelle, et all. Appropriatness of Minimum Nurse Staffing Ratios in Nursing Homes: Phase II final report, December 2001).

    The steady cash flows nursing home operators produce is a big attraction for private-equity firms that need the cash to pay down borrowed debt. Beverly, Extendicare, Genesis and Vencor/Kindred went private, and now Manor Care. Private firms keep all their dirty deeds from the public, especially consumers.

    Ownership structures with multiple stakeholders have been used by other private-equity firms to minimize liabilities and shield them from regulator inquiries. They use these kinds of structures to avoid taking responsibility when taking control of businesses. Private-equity buyout firms such as the Carlyle Group are not required to publicly disclose information about the business practices of the companies they own.

    The Carlyle Group, one of the world's largest private-equity funds with more than $75 billion under management, owns Manor Care, the largest nursing home chain, and Synagro, the largest sludge company in the United States. Perhaps they'll process all their municipal waste products, and distribute it to the lawns and gardens of all their nursing homes and add to the significant health complaints at the homes?

    http://www.baltimoresun2.com/talk/showthread.ph…

  • DonB

    Isn't the Carlyle Group been heavily invested in by Bush Swnior?

  • gpawelski

    If you are talking about what Cliff Schecter described as the Carlyle Group, an international investment club for yacht owners that exists so scoundrels from across the globe can break bread while discussing ways to further enrich themselves at the expense of 99.75% of the world's people, and its prominent members including the Bush and bin Laden familes? The only thing I have about that association is from the people at The Guardian.

    http://www.guardian.co.uk/world/2001/oct/31/sep…

    The Carlyle Group has a colorful history that has attracted attention. Its list of former advisors includes George H.W. Bush. It sold a 7.5% stake in to the Middle Eastern emirate of Abu Dhabi, and prior to 2001, its investors included the bin Laden family of Saudi Arabia.

    The Carlyle Group is moving well beyond their usual interests, involving itself in the operation of nursing homes (it has no experience in nursing homes), and forwarding the crazy notion that patient care should rank at least somewhere in the priority range of how many Mercedes your average Carlyler can pack into their 18-car garage.

    These types of private for-profits have acquired nursing homes, cut expenses and staff, sometimes below minimum legal requirements, increased profits, and quickly resold facilities for “significant” gains. If the Carlyle Group marriage to Manor Care is successful, they then could sell it to Dubai, which has more money than it knows how to deal with. But by regulatory benchmarks, residents at those nursing homes are worse off then they were under their previous public for-profit owners.

  • gpawelski

    If you are talking about what Cliff Schecter described as the Carlyle Group, an international investment club for yacht owners that exists so scoundrels from across the globe can break bread while discussing ways to further enrich themselves at the expense of 99.75% of the world's people, and its prominent members including the Bush and bin Laden familes? The only thing I have about that association is from the people at The Guardian.

    http://www.guardian.co.uk/world/2001/oct/31/sep…

    The Carlyle Group has a colorful history that has attracted attention. Its list of former advisors includes George H.W. Bush. It sold a 7.5% stake in to the Middle Eastern emirate of Abu Dhabi, and prior to 2001, its investors included the bin Laden family of Saudi Arabia.

    The Carlyle Group is moving well beyond their usual interests, involving itself in the operation of nursing homes (it has no experience in nursing homes), and forwarding the crazy notion that patient care should rank at least somewhere in the priority range of how many Mercedes your average Carlyler can pack into their 18-car garage.

    These types of private for-profits have acquired nursing homes, cut expenses and staff, sometimes below minimum legal requirements, increased profits, and quickly resold facilities for “significant” gains. If the Carlyle Group marriage to Manor Care is successful, they then could sell it to Dubai, which has more money than it knows how to deal with. But by regulatory benchmarks, residents at those nursing homes are worse off then they were under their previous public for-profit owners.

  • gpawelski

    If you are talking about what Cliff Schecter described as the Carlyle Group, an international investment club for yacht owners that exists so scoundrels from across the globe can break bread while discussing ways to further enrich themselves at the expense of 99.75% of the world's people, and its prominent members including the Bush and bin Laden familes? The only thing I have about that association is from the people at The Guardian.

    http://www.guardian.co.uk/world/2001/oct/31/sep…

    The Carlyle Group has a colorful history that has attracted attention. Its list of former advisors includes George H.W. Bush. It sold a 7.5% stake in to the Middle Eastern emirate of Abu Dhabi, and prior to 2001, its investors included the bin Laden family of Saudi Arabia.

    The Carlyle Group is moving well beyond their usual interests, involving itself in the operation of nursing homes (it has no experience in nursing homes), and forwarding the crazy notion that patient care should rank at least somewhere in the priority range of how many Mercedes your average Carlyler can pack into their 18-car garage.

    These types of private for-profits have acquired nursing homes, cut expenses and staff, sometimes below minimum legal requirements, increased profits, and quickly resold facilities for “significant” gains. If the Carlyle Group marriage to Manor Care is successful, they then could sell it to Dubai, which has more money than it knows how to deal with. But by regulatory benchmarks, residents at those nursing homes are worse off then they were under their previous public for-profit owners.

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