LANSING – State Representatives Kathy Angerer (D-Dundee) and Kate Ebli (D-Monroe) threw their support behind a plan unveiled today at the Capitol that aims to protect seniors by increasing accountability and quality of care standards when it comes to nursing home care and licensing. Angerer is a co-sponsor of the plan and introduced a piece of the package.
"The decision to place a loved one in a nursing home is never an easy one, and not being able to fully evaluate the quality of care our family members or friends will receive only makes it that much more difficult," said Ebli, who joined Angerer and a group of Monroe County residents at the unveiling of the plan. "If we allow Michigan's nursing homes be snatched up by private investors without oversight and transparency, it is our loved ones who may truly suffer the consequences. We must do all we can to prevent that from happening in Michigan in order to protect our residents."
The House Health Policy Committee, chaired by Angerer, and theHouse Senior Health, Security and Retirement Committee, recently held joint legislative hearings to fully examine what private equity ownership means for Michigan seniors and their families. Testimony showed current law does not allow for strong enough oversight and enforcement of nursing homes owned by private equity firms. Such facilities are equated with unacceptable care and conditions, and action must be taken to hold these nursing homes accountable.
In response to the hearings, the House developed a seven-bill package to protect Michigan seniors. The package will increase the transparency of nursing home ownership and hold private equity firms accountable for their actions. The package also will enforce operating and licensing standards, and require appropriate funding be put into place.
"Our nursing homes need higher quality of care standards and more accountability – not less," Angerer said. "People and patient care should never, ever be compromised for the sake of profits. I am confident that with our new package, we will be able to properly care for our seniors by taking key steps toward protecting the quality of care and improving patient safety."
A New York Times (NY Times) investigation analyzed trends at nursing homes purchased by private investment groups and found that investors who acquire nursing homes often reduce costs, increase profits and resell the facilities for significant gains. On average, the paper found residents at facilities owned by private investment firms have fared more poorly than occupants of other nursing homes. Before these homes were acquired by private investors, many scored at or above national averages in similar measurements.
The plan unveiled today will:
- Increase transparency to require owners of nursing homes to disclose resources and be held accountable for delinquent care.
- Change the language of current Michigan law to trigger a change of ownership whenever a large corporation buys a nursing home which will allow the Department of Community Health to decide whether or not to license the nursing home.
- Require that notice be given to residents and those responsible for them at least 30 days prior to a change of ownership, giving them time to make a decision to change facilities.
- Require that the nursing home license and the names and contact information of the nursing home officers is clearly posted at the facility.
- Establish penalties for nursing home employees or administrators who provide fraudulent information to nursing home surveyors or investigators.
- Require the owners of nursing homes to prove they have the proper resources to provide quality care.
- Require that every nursing home be properly insured in order to operate.
The seven-bill package was announced today in conjunction with "Older Michiganians Day" – a day for senior advocacy at the Capitol.
"At many homes, more profit and less nursing," The New York Times, Sept. 23, 2007