It seems like just days ago, Carlyle co-founder David Rubenstein defended his purchase of huge nursing provider, ManorCare, by saying, "We've only owned it two weeks." It turns out the huge private equity underwriter closed on the Japanese land and buildings of Bon Sejour Grand's resident paid nursing homes. Carlyle paid #136 million for the assets.
Recently, U.S. regulators paid no attention to Carlyle's track record in another health care company it had only owned "two weeks." The PEU purchased LifeCare in August 2005, right before Hurricane Katrina sideswiped the Big Easy. LifeCare's unit in Memorial Hospital lost 24 patients in the storm and its steamy, toxic aftermath.
I can see how Carlyle hoodwinked Fran Townsend and the Bush administration to leave them out of their Lessons Learned report, but how did they get the Japanese, noted for quality, to ignore their past failing to patients in a time of crisis? Maybe it's because Carlyle will only own the land and buildings.
But that carries its own risk, especially when patients need 24 hour patient care during a disaster. Carlyle's LifeCare sued its landlord after Katrina, obtaining an unknown settlement from the owner of Memorial Hospital, Tenet Healthcare. But Carlyle is famous for their risk management abilities. Getting Fran to leave them out of her poorly done investigative report was a stroke of genius. Funny, global risk management is Mrs. Townsend's stated next step in her storied career path. Will she end up at the PEU with offices just down the street from her prior employer? Time will tell...
Recently, U.S. regulators paid no attention to Carlyle's track record in another health care company it had only owned "two weeks." The PEU purchased LifeCare in August 2005, right before Hurricane Katrina sideswiped the Big Easy. LifeCare's unit in Memorial Hospital lost 24 patients in the storm and its steamy, toxic aftermath.
I can see how Carlyle hoodwinked Fran Townsend and the Bush administration to leave them out of their Lessons Learned report, but how did they get the Japanese, noted for quality, to ignore their past failing to patients in a time of crisis? Maybe it's because Carlyle will only own the land and buildings.
But that carries its own risk, especially when patients need 24 hour patient care during a disaster. Carlyle's LifeCare sued its landlord after Katrina, obtaining an unknown settlement from the owner of Memorial Hospital, Tenet Healthcare. But Carlyle is famous for their risk management abilities. Getting Fran to leave them out of her poorly done investigative report was a stroke of genius. Funny, global risk management is Mrs. Townsend's stated next step in her storied career path. Will she end up at the PEU with offices just down the street from her prior employer? Time will tell...
