28 November 2007

W.Va. Puts Hold on $6.3b Nursing Home Buyout

At the urging of a labor union, the West Virginia Health Care Authority has stayed its approval of a the state's portion of a massive buyout of a national nursing home chain by the Carlyle Group.

The regulators have also set a Dec. 14 hearing to assess the concerns and allegations raised by the Service Employees International Union District 1199, The Associated Press reports.

"We're not issuing any sort of decision on the merits. We are just granting their request for a reconsideration," authority Chairwoman Sonia Chambers told AP.

SEIU has mounted a nationwide campaign questioning the $6.3 billion deal to acquire HCR Manor Care and its more than 500 health care-related facilities. The union represents nursing home workers, including about 1,100 Manor Care employees, AP reports.

But as AP also reports, the global investment firm's bid for Manor Care is also under scrutiny in at least 30 other states.

The Charleston Gazette also has an article on the authority's decision.

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