State lawmakers scrutinizing Manor Care sale; company to re-organize

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State lawmakers in Pennsylvania will hold a hearing Tuesday to investigate possible after-effects of the Carlyle Group's planned purchase of Manor Care, the nation's largest nursing home chain. This comes on the heels of the disclosure that Carlyle plans to create about 300 new cooperating entities within the 500-facility chain.

Although labor activists and plaintiff attorneys have stimulated protests in numerous other states, Pennsylvania lawmakers appear to be unique in their investigation, a Manor Care spokesman said. The proposed $6.3 billion deal, which close as early as this month, also has led to calls by U.S. lawmakers for investigations of for-profit nursing homes.

"I do not want to find out next year at this time that, because we failed to ask reasonable questions, we are facing a crisis of care in Pennsylvania's nursing homes," said Rep. Phyllis Mundy, head of Pennsylvania's House Aging and Older Adult Services Committee.