Stiffer penalties on shoddy nursing homes sought

Stiffer penalties on shoddy nursing homes sought
An elderly man in a file photo. Senators said on Thursday they will seek stiffer sanctions against nursing homes delivering shoddy care and require clear ownership information from homes acquired by private equity groups. (File/Reuters)WASHINGTON (Reuters) - Senators said on Thursday they willseek stiffer sanctions against nursing homes delivering shoddycare and require clear ownership information from homesacquired by private equity groups.
The bipartisan legislation would give more enforcementpower to the U.S. Centers for Medicare and Medicaid Services(CMS), which oversees state inspections of the nation's 16,400nursing homes and also pays for the care of many poor andelderly residents.
"Under the current system, nursing homes that are notproviding good care can escape penalty from the governmentwhile they slip in and out of compliance with federalregulations," said Sen. Herb Kohl, chairman of the Senate'sSpecial Committee on Aging, at a hearing on Thursday.
Kohl, a Wisconsin Democrat, is crafting legislation withCharles Grassley, an Iowa Republican, that would give CMS theability to levy higher fines against shoddy nursing homes andto intervene more quickly to ensure resident safety.
The bill would also address growing concern about increasedownership of nursing homes by private equity firms, amid mediareports that such ownership leads to poor quality care. Themeasure would require public reporting of ownershipinformation, including affiliates, and deny payments for newresidents until problems are fixed.
Private equity firms typically buy companies, cut costs andresell them later at a profit.
Lawmakers cited a September 23 New York Times story thatsaid after private equity firms bought certain nursing homes,the number of safety violations rose, budgets and staff werecut, and patient care suffered.
Similar concerns were voiced at a separate hearing held onThursday by a U.S. House of Representatives Ways and Meanssubcommittee.
The acting head of CMS testified that in some cases, thegovernment cannot determine all the nursing homes owned by anentity because of complex ownership structures.
Kerry Weems, CMS acting administrator, said the agency willhave a more sophisticated database in 2009 to track ownershipand care quality.
"We still have the ability to enforce good quality," Weemssaid. "We'll need to see if ownership affects quality. We'venot reached that conclusion yet," he said.
CMS funds about two-thirds of U.S. nursing home carethrough its Medicare and Medicaid programs.
A spokesman for the American Health Care Association saidthe long-term care industry was working to improve poorlyperforming facilities. Spokesman Steve Biondi also citedgovernment data showing improvements in clinical measures suchas staffing and pain management.
Private equity money has flowed into the nursing homesector in recent years, attracted by stable Medicarereimbursement and the value of underlying real estate.
Shareholders last month approved the takeover by CarlyleGroup of Manor Care Inc, the largest U.S. nursing home ownerfor $4.9 billion, excluding assumed debt. Another chain,Genesis Healthcare Corp, agreed to be bought in January, andBeverly Enterprises went private in 2005.
(Editing by Tim Dobbyn)