More Beds, More Money | The Nation


More Beds, More Money

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Beverly Enterprises controls more than 60,000 nursing-home beds, more than any other company worldwide. But six other chains also enjoy significant shares of the industry, rapidly placing more patients in the hands of big conglomerates.

About the Author

Eric Bates
Eric Bates is a staff writer for The Independent, an alternative weekly in Durham, North Carolina.

Also by the Author

James Neal is a short, muscular man with close-cropped hair who has spent the past twelve years behind bars for armed robbery.

Research assistance was provided by the Investigative Fund of The Nation Institute.

§ Integrated Health Services (Owings Mills, Maryland). The chain moved into the front ranks of the inudstry when it acquired rival Horizon/CMS Healthcare for $1.2 billion. It now boasts 42,600 beds and revenues of $3 billion.

§ Vencor (Louisville, Kentucky). The chain drew fire last year when it evicted low-income residents to make way for wealthier clientele. With 38,300 beds, it enjoys revenues of $3 billion.

§ Sun Healthcare Group (Albuquerque, New Mexico). After a buying spree that brought it two smaller chains, Sun has vaulted into the big leagues with 44,000 beds and $3.2 billion in revenues.

§ HCR Manor Care (Toledo, Ohio). A merger between two industry giants formed a new chain with 47,000 beds and revenues of $2.2 billion. Chairman Stewart Bainum Jr. immediately promised "future acquisitions, at the lowest cost of capital in the industry."

§ Mariner Post-Acute Network (Atlanta, Georgia). Another member of the billion-dollar club, formed by the merger of Mariner Health Group and Paragon Health Network. Dogged by allegations of racketeering at a former nursing home in Tampa, the chain controls 48,100 beds and $2.7 billion in revenues.

§ Genesis Health Ventures (Kennett Square, Pennsylvania). The company bought a pharmaceutical chain and sponsored a real estate investment trust for some of its 37,700 beds, boosting revenues to $1.4 billion.

Source: All figures are from company officials; revenues are for the latest available twelve-month period.

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