The Gold Standard A Bit Tarnished

A scathing article from The Washington Post discloses quality problems at HCR ManorCare before its sale to Welltower and ProMedica Health System.

For those of you who missed the Thanksgiving weekend article from the Washington Post about poor care at HCR ManorCare’s nursing facilities in Pennsylvania, well, why ruin a great weekend?

All kidding aside, it did not portray HCR ManorCare in a very good light, citing numerous cases of poor care and lack of staffing. But I am not sure if they were attacking HCR ManorCare itself, or The Carlyle Group, which owned the company at the time and did the $6 billion sale/leaseback which financially strangled them.

Granted, most of the events cited in the article were from a year or two ago, but “roaches all over the place”? This was not the Manor Care that the Bainum family was once proud to call its own.

The over-levered capital structure was the primary culprit, but once quality deteriorates, and reputations change, it is hard to bring back the luster from when the company represented the gold standard for skilled nursing facilities. ProMedica Health System will find that out soon enough. But I wish them well in the endeavor.

 

 

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