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A major factor in nursing home abuse cases is the fact that many nursing homes are underfunded and understaffed. The nursing homes consistently claim that they do not have the money to fund and appropriately run these homes but recent business trends show otherwise. The Carlyle Group announced yesterday that it is going to purchase Manor Care, a nursing home operator for $6.3 billion.

Manor Care, which traces its roots to a single nursing home in Wheaton 48 years ago, has grown into one of the largest providers of long-term care and services in the country, with nearly 60,000 employees in more than 500 facilities under the Heartland, ManorCare Health Services and Arden Courts brands.

Manor Care CEO stated that this deal “…affords a significant cash premium to our shareholders….” The head of Manor Care’s health care team stated that the company is positioned for continued growth and success.

Manor Care was also once one of the nation’s largest hotel franchisers, licensing such brands as Comfort Inn, Quality Inn, Clarion Inn, Econo Lodge, Sleep Inn, Rodeway Inn and Friendship Inn through its Choice Hotels International subsidiary, which it spun off in 1996. It later sold its 50 percent stake in Vitalink Pharmacy Services, which provides medications for nursing homes and other institutional buyers.

Clearly, nursing homes such as Manor Care are not suffering from a lack of revenue or funding and are choosing to place their profits over people so that the patients are neglected and suffer but the upper ranks of the company flourish. There is no excuse for the underfunding and understaffing that occurs which harms our elderly.

For more information on this subject, please refer to our section on Nursing Home and Elder Abuse.

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