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The future of HCR ManorCare

HCR ManorCare Inc., a company that owns nursing homes all over the country, was recently purchased by the Carlyle Group for over $6 billion. This supports the trend of large firms acquiring eldercare companies. While this may be profitable for these firms and their investors, it remains to be seen how the nursing home and long-term care industry will be affected. Typically in these situations, in order to maximize financial opportunity, private equity firms have a tendency to implement aggressive cost-cuts, including layoffs. Nursing homes and long term care facilities are already underfunded and understaffed and this has led to a consistent amount of emerging instances of nursing home abuse and neglect. ManorCare, in particular, has had many problems providing patients with adequate care.

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