Maryland study investigates relationship between nursing home ownership status and quality of care

Alarmed that the purchase of nursing homes by larger companies couldcause a decline in care, Maryland is studying whether restrictionsshould be placed on ownership as regulators face criticism that privateequity groups make it more difficult for the public to hold nursinghomes accountable for poor care.  The goal of the two bills that Gov. Martin O’Malleyrecently signed into law is to determine if the type of ownership -ranging from small nonprofits to corporations with worldwide holdings -has a connection with violations of state and federal regulations atnursing homes, said Wendy Kronmiller, director of the state Office ofHealth Care Quality.

The driving force behind the effort is the acquisition of one of thenation’s largest nursing home chains, HCR ManorCare, by the CarlyleGroup for $6 billion in December. HCR ManorCare has 14 nursing homes inMaryland and 277 nationwide.  The Service Employees International Union, which represents 1,100workers at HCR ManorCare nursing homes nationwide, including 200 inMaryland, released a study last year asserting that buyouts of twoother nursing home chains have led to more violations of state andfederal regulations, and new business structures to limit liability,reduce tax bills and make it more difficult to track how Medicare andMedicaid dollars are spent. Union officials have complained ofviolations of federal and state regulations at HCR ManorCare nursinghomes in Maryland and of what they say is “inadequate staffing.”

Source/more:  Baltimore Sun, http://www.baltimoresun.com/news/local/bal-te.md.owners16jun16,0,3332128.story