Harborside retirement community residents worry about declining nursing care as sale talks drag on, attorney says
The Harborside retirement community in Port Washington see in March 2023. Credit: Newsday/J. Conrad Williams Jr.
The care provided by The Harborside's nursing home is declining and residents are increasingly worried about their finances as negotiations drag on to sell the bankrupt retirement community in Port Washington, an attorney for the residents said on Wednesday.
“Patient care is beginning to decline; there’s understaffing" in the nursing home, said Elizabeth Aboulafia, the lawyer hired by residents and their families last month to represent them in federal bankruptcy court. She said she was speaking for 43 current and former residents.
“Residents don’t feel they are getting the quality of care that they need — and they aren’t confident about the care that they will receive in the future” should a sale be finalized, Aboulafia said during a hybrid court hearing.
"Many of my clients put their life savings into living at The Harborside and now worry that [the savings] will never be returned to them" as stipulated by the contract signed when they moved in, she added.
Rachel Nanes, The Harborside’s attorney, shot back, “The health and safety of the community hasn’t been impaired” by the third bankruptcy filing in 10 years.
“There has been [employee] turnover but [Harborside management] has addressed the issue” by using temporary staffing agencies, she said. Records show the facility has about 140 employees.
The lawyers also disagreed over whether the indoor pool is in working order.
Nanes said Harborside executives understand “the stress” that the 181 residents, whose average age is 90, are under and is pursuing two bids to ensure a sale agreement comes together.
However, the identity of the two potential buyers and details about their offers haven’t been divulged despite repeated requests from the bankruptcy judge.
Under questioning by Judge Alan S. Trust on Wednesday, it was revealed that one of the bidders has proposed to change The Harborside’s operational status from nonprofit to for-profit. This move would be a first in New York State.
A similar change was put forward by Life Care Services Communities LLC last year and led to a disagreement with regulators that scuttled the $104 million sale agreement that had been approved by the court one year ago. Iowa-based LCS is the third-largest operator of senior care facilities in the country.
LCS officials have said they are no longer interested in owning The Harborside.
“How do you know that the state will react any differently [to the new bidder’s proposal] than it did to LCS?” the judge asked Wednesday.
Nanes, The Harborside attorney, replied, “There are entirely different circumstances around the [new] for-profit bidder.”
She added that The Harborside has sought input from regulators at the state Department of Health but so far “we've not received anything substantive.”
The facility opened in 2010 but struggled to fill its 329 units because of the aftereffects of the Great Recession, particularly depressed home values.
Prospective residents often sell their homes to pay The Harborside’s entrance fee, which is determined by the size of the apartment. A portion of the entrance fee, between $527,250 and $2.2 million under one type of sales contract offered in 2021, is supposed to be refunded after a resident dies.
The Harborside offers different levels of care as residents age, from independent- and assisted-living apartments to a nursing home and dementia care. It is one of four "continuing care retirement communities" on Long Island.
Harborside representatives said they've received one bid and have given a second bidder until 11 a.m. Thursday to formalize their offer. The bidders will then be given 30 days to examine the facility's finances and operations. If a sale agreement is reached it would be considered by the court on Feb. 12, the judge said.
Separately, Harborside resident Audrey P. Vasoll begged the judge to do everything possible to keep the facility open.
"I'm terrified of the possibility that I could be forced to leave this wonderful place," the 93-year-old wrote in a letter submitted to the court on Wednesday. "This is my home. Where would I go?"
The care provided by The Harborside's nursing home is declining and residents are increasingly worried about their finances as negotiations drag on to sell the bankrupt retirement community in Port Washington, an attorney for the residents said on Wednesday.
“Patient care is beginning to decline; there’s understaffing" in the nursing home, said Elizabeth Aboulafia, the lawyer hired by residents and their families last month to represent them in federal bankruptcy court. She said she was speaking for 43 current and former residents.
“Residents don’t feel they are getting the quality of care that they need — and they aren’t confident about the care that they will receive in the future” should a sale be finalized, Aboulafia said during a hybrid court hearing.
"Many of my clients put their life savings into living at The Harborside and now worry that [the savings] will never be returned to them" as stipulated by the contract signed when they moved in, she added.
Rachel Nanes, The Harborside’s attorney, shot back, “The health and safety of the community hasn’t been impaired” by the third bankruptcy filing in 10 years.
“There has been [employee] turnover but [Harborside management] has addressed the issue” by using temporary staffing agencies, she said. Records show the facility has about 140 employees.
The lawyers also disagreed over whether the indoor pool is in working order.
Nanes said Harborside executives understand “the stress” that the 181 residents, whose average age is 90, are under and is pursuing two bids to ensure a sale agreement comes together.
However, the identity of the two potential buyers and details about their offers haven’t been divulged despite repeated requests from the bankruptcy judge.
Under questioning by Judge Alan S. Trust on Wednesday, it was revealed that one of the bidders has proposed to change The Harborside’s operational status from nonprofit to for-profit. This move would be a first in New York State.
A similar change was put forward by Life Care Services Communities LLC last year and led to a disagreement with regulators that scuttled the $104 million sale agreement that had been approved by the court one year ago. Iowa-based LCS is the third-largest operator of senior care facilities in the country.
LCS officials have said they are no longer interested in owning The Harborside.
“How do you know that the state will react any differently [to the new bidder’s proposal] than it did to LCS?” the judge asked Wednesday.
Nanes, The Harborside attorney, replied, “There are entirely different circumstances around the [new] for-profit bidder.”
She added that The Harborside has sought input from regulators at the state Department of Health but so far “we've not received anything substantive.”
The facility opened in 2010 but struggled to fill its 329 units because of the aftereffects of the Great Recession, particularly depressed home values.
Prospective residents often sell their homes to pay The Harborside’s entrance fee, which is determined by the size of the apartment. A portion of the entrance fee, between $527,250 and $2.2 million under one type of sales contract offered in 2021, is supposed to be refunded after a resident dies.
The Harborside offers different levels of care as residents age, from independent- and assisted-living apartments to a nursing home and dementia care. It is one of four "continuing care retirement communities" on Long Island.
Harborside representatives said they've received one bid and have given a second bidder until 11 a.m. Thursday to formalize their offer. The bidders will then be given 30 days to examine the facility's finances and operations. If a sale agreement is reached it would be considered by the court on Feb. 12, the judge said.
Separately, Harborside resident Audrey P. Vasoll begged the judge to do everything possible to keep the facility open.
"I'm terrified of the possibility that I could be forced to leave this wonderful place," the 93-year-old wrote in a letter submitted to the court on Wednesday. "This is my home. Where would I go?"
WHAT NEWSDAY FOUND
- An attorney for residents of The Harborside said their care and finances are being negatively impacted by prolonged negotiations to find a buyer for the bankrupt retirement community.
- Managers of the Port Washington facility said the health and safety of the 181 residents, whose average age is 90, has not been compromised by three bankruptcy filings in 10 years.
- One of the two potential buyers wants to change The Harborside's operating status from nonprofit to for-profit, a similar proposal led to the collapse of an earlier $104 million sale agreement.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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Newsday Live Music Series: Long Island Idols Newsday Live presents a special evening of music and conversation with local singers who grabbed the national spotlight on shows like "The Voice," "America's Got Talent,""The X-Factor" and "American Idol." Newsday Senior Lifestyle Host Elisa DiStefano leads a discussion and audience Q&A as the singers discuss their TV experiences, careers and perform original songs.
