LANSING – State Representative Mike Simpson (D-Jackson) today unveiled a package of seven bills to protect seniors by increasing accountability and quality of care standards when it comes to nursing home care and licensing.
"People and patient care should never be sacrificed for the sake of profit -- these are our parents and grandparents, and they deserve the highest quality of care possible," Simpson, who is a co-sponsor of the package, said. "Our plan will increase accountability and care standards, which will allow us to give our seniors the kind of care they deserve."
The House Senior Health, Security and Retirement Committee recently held joint legislative hearings with the House Health Policy Committee, of which Simpson is the Vice-Chair, to fully examine what private equity ownership of nursing homes means for Michigan seniors and their families. The testimony has shown that current law does not allow for strong enough oversight and enforcement of privately owned nursing homes.
A New York 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, 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 House package will increase transparency to require owners of nursing homes to be held accountable for funding and 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; and 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.
The seven bill package was announced today by House Democrats 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