Deadline extended for deal that could stop Cold Spring Hills Center for Nursing & Rehabilitation from closing
A deadline for the union representing Long Island's second largest nursing home to reach a modified labor deal with the facility's proposed new owner has been extended through Wednesday, allowing both sides to continue negotiations that could keep the Woodbury facility from closing.
The negotiations are expected to impact the futures of the nearly 300 residents of financially troubled Cold Spring Hills Center for Nursing & Rehabilitation — many of whom are elderly and disabled — along with the jobs of the nursing home's roughly 500 employees.
Arbitrator Martin Scheinman, who led mediation with the two sides on Thursday, said in a Newsday interview on Tuesday he is "continuing to monitor and be available to help the parties reach an amicable deal."
A source familiar with the negotiations told Newsday the deadline for reaching an agreement on a modified contract was extended from Monday to 11:59 p.m. Wednesday.
Members of 1199SEIU United Healthcare Workers East, which represents most of the facility's employees, and attorneys for Eliezer Jay Zelman so far have been unable to reach an agreement. Zelman, a Rockland County nursing home owner, wants to take over operations as a temporary receiver and ultimately purchase Cold Spring Hills.
Attorneys for Cold Spring Hills have said previously that without a revised labor deal, Zelman won't take over the facility and the nursing home will close.
The union's president declined to comment Tuesday, as did an attorney for the nursing home's owner. The potential buyer and an attorney who represents him didn't respond to inquiries.
Bent Philipson, Cold Spring Hills' primary owner, and his son, Avi Philipson, the business' managing member, have said they're incurring $625,000 in weekly losses and cannot afford to continue operating the facility.
The nursing home — which last month filed for Chapter 11 bankruptcy protection — recently submitted a plan to the New York State Health Department indicating it would close on May 15 unless Zelman, who owns three other nursing homes in the state, reached a modified deal with the union.
All remaining residents would be relocated to other long-term care facilities under the closure plan, which state health officials must approve.
In a letter to Scheinman last Wednesday, Martin Cauz, the nursing home's chief restructuring officer, said "if an agreement is reached, the receivership and sale can proceed promptly, residents will be able to remain in place and employees will keep their jobs. If not, CSH will shut down."
Cauz declined to comment Tuesday on the negotiations.
In Jan. 24 court filings, the union said Zelman wants "to eliminate all scheduled wage increases and drastically slash benefits," while maintaining a more expensive employee-funded health insurance plan that their members have had since April.
In addition, Zelman wants to remove positions from the bargaining unit, including registered nurses, physical therapists, physical therapy assistants, occupational therapists, certified occupational therapy assistants, respiratory therapists, respiratory technicians and dietitians, the union said.
The state Health Department, which declined to comment Tuesday, has approved Zelman to become the nursing home's temporary receiver, managing all operations and taking over payroll, according to court records submitted as part of the bankruptcy proceeding. The 588-bed nursing home is now down to just 299 residents, court records show.
Zelman also has submitted an application to the department to purchase Cold Spring Hills for $10, although the agreement, which would require approvals that could take months, calls for him to take on $72 million in mortgage debt on the property.
In December, Cold Springs Hills threatened an "emergency evacuation" of its residents, a Dec. 31 facility closure and the intent to lay off its entire workforce.
But on Dec. 20, a judge granted a temporary restraining order the New York Attorney General's Office sought that blocked the discharge or transfer of residents and required the facility to remain operational.
The facility then filed for bankruptcy protection on Jan. 2, moving the case to federal court.
Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.
SARRA SOUNDS OFF: Two state girls hoops titles, and Matt Brust joins the show On the latest episode of "Sarra Sounds Off," two Long Island schools win state basketball titles and 1980s All-Decade Team member Matt Brust joins the show to talk LI hoops history.
SARRA SOUNDS OFF: Two state girls hoops titles, and Matt Brust joins the show On the latest episode of "Sarra Sounds Off," two Long Island schools win state basketball titles and 1980s All-Decade Team member Matt Brust joins the show to talk LI hoops history.
