SEIU is still putting on the heat as private equity firm The Carlyle Group attempts to finalize the buyout of HCR ManorCare, but in recent weeks, they've been joined by state regulators who are growing increasingly concerned about the effects the buyout might have on care in their 552 facilities around the country. The concerns about staffing, quality of care, and the effects of having a profit-minded private entity heading up facilities designed to care for the elderly have led lawmakers in Illinois, Wisconsin, Maryland, Pennsylvania, and Florida to hold hearings on the potential impacts of the buyouts. These concerns have delayed the transfers of licenses needed to complete the deal.
The $6.3 billion deal was supposed to close three weeks ago, but concerns about the buyout have caused delays, and are starting to worry investors. Last week, shares in the company were trading at around 9 percent below the $67 price listed in the deal. Analysts are concerned that the longer the sale is delayed, the more time there will be for critics to air concerns and turn public opinion against the deal. For now, the target date for finishing the deal has been pushed back to Friday. Seems like SEIU's campaign has been pretty successful in thwarting the buyouts from going through without assurances about what they will mean for residents and employees.
--Kate Sheppard
