Remember the Big Payout to Nursing Home Chain, HCR ManorCare?
The for-profit nursing home chain ManorCare went bankrupt with $7.1 billion in debt in 2018 over neglect and Medicare fraud allegations. The group operates about 15 facilities located throughout the Chicago area, primarily under the Heartland, ManorCare Health Services and Arden Courts brands. Prior to the bankruptcy, the chain was owned by the Carlyle Group, who bought the real estate in 2007 for $6.1 million. According to the Washington Post, the chain couldn’t make the $472 million a year rent payment, so instead, left its financial ruin to the takeover company, Quality Care Properties. Residents were found neglected, uncared for and living with painful bedsores and fall injuries, and without barely enough staff. An analysis of violation reports and records from the Illinois Department of Health shows:
- Staff at a South Holland facility failed to prevent a woman from getting bedsores, and an infection led to her untimely death in 2010.
- Staff at the Arlington Heights location allowed a woman to fall and suffer a brain hemorrhage.
In both of these preventable situations, ManorCare agreed to pay six-figure settlements to close the cases. The struggling business continued to become even more unprofitable through the years, although Carlyle was somehow off the hook for more than $80 million in violation fees. The Chicago Tribune had previously reported that the Carlyle Group was about pinching pennies, which resulted in several massive lost lawsuits, staff cuts, and a 26% rise in dangerous health code violations from 2013 to 2017.
Steven Levin Speaks About ManorCare to Chicago Tribune Reporter
Levin & Perconti partner and founder, Steven Levin, was recently asked about the ManorCare dealings by the Chicago Tribune and said that ownership by private equity generally leads to cost-cutting and understaffing, “the single biggest problem” in nursing home care since it often results to resident abuse and neglect and preventable injuries. “The private equity model is not designed for any health care industry and especially nursing homes,” he said.
ManorCare received much attention in 2018 not only due to the large payout to its ex-CEO but also because they are one of the nation’s largest nursing home chains.
The company is again in the news as the Cook County state attorney races heats up. Bill Conway’s father is supporting his state’s attorney bid from money that came from his investments in the bankrupt and neglectful nursing home chain, ManorCare.
Levin & Perconti: Attorneys for Victims of Nursing Home Abuse & Neglect
In our three decades of litigating nursing home abuse and neglect cases, the attorneys of Levin & Perconti have successfully settled and tried an overwhelming number of cases involving for-profit nursing home chains that assume families will not come after them for injuries and death of their loved ones, including residents of ManorCare facilities. We have worked to consistently uncover histories of violations and offenses, including improper staffing ratios that lead to medication errors, falls, suffocations, wandering, elopement, pressure sores, and many other unnecessary injuries.
If you believe someone you love has been the victim of mistreatment in an Illinois nursing home and has suffered injuries or even death, please call us now at (312) 332-2872 for a free consultation. We do not get paid unless we recover money for you.