The Service Employees International Union Healthcare filed a legal complaint late yesterday with the Michigan Department of Community Health to stop a possible buyout by the hedge fund Carlyle Group of 28 Michigan nursing homes. The 28 homes are currently owned by Manor Care, which also owns homes in Illinois and Pennsylvania.
But a spokesman for the MDCH said the complaint was premature.
“I don’t know how much power that filing has because we have not made a decision (about who will get the licenses),” said James McCurtis, spokesman for the MDCH.
McCurtis could not immediately confirm how many other companies had applied for the Manor Care licenses.
“We’re concerned that The Carlyle Group and Manor Care are attempting to rush this deal through under the cover of night before a full investigation is completed,” said Rickman Jackson, president of SEIU Healthcare Michigan. “Serious concerns are out there about a private equity firm running Michigan’s largest nursing home chain, and we are urging state regulators to do their due diligence and inspect this deal closely before it’s too late.”
The state House began hearings into the takeover on December 6.
The union represents more than 55,000 healthcare workers statewide.