State officials: Cold Spring Hills Center for Nursing & Rehabilitation seeks temporary takeover
Cold Spring Hills Center for Nursing & Rehabilitation in Woodbury. Credit: Newsday/John Paraskevas
The ownership of the financially struggling Cold Spring Hills Center for Nursing & Rehabilitation has asked the New York State Health Department to put the Woodbury facility under receivership, a move that would allow a new operator to take temporary control of Long Island's second largest nursing home, according to the state agency.
A court-ordered report, released late Tuesday by the nursing home's independent health monitor, said the proposed receiver is an individual who is considering purchasing the nursing home.
"The potential new owner has submitted an application to be appointed as the receiver of Cold Spring Hills while the full change of ownership application is submitted for review," wrote Lisa Wickens-Alteri, the independent health monitor, who declined to comment on the move.
Experts said a move to another party controlling the facility's operations and finances could provide a potential lifeline for the nursing home, which court records show has been on the brink of economic collapse for months during the search for a new owner.
Last year, it got one of the largest federal financial penalties in the country for jeopardizing patient safety.
A health department spokeswoman declined to disclose the identity of the "specific receiver" requested by the current ownership. Cold Spring Hills' attorneys didn't respond to requests for comment.
"The department received documents from the operator’s counsel on Sept. 27 requesting the appointment of a specific receiver and subsequently requested additional information that was submitted to the department on Nov. 5," said health department spokeswoman Monica Pomeroy. "The department is reviewing the documents."
Pomeroy declined to provide copies of the documents and said a decision on approving the receivership request hasn't been made. Newsday filed a Freedom of Information Law request Monday seeking the documents.
Financially distressed nursing homes occasionally are put into a receivership, a remedy that allows a third party to operate the facility, most often during periods of litigation or financial distress, industry experts said.
For example, in July, the Massachusetts attorney general placed three nursing homes under temporary receivership, citing a litany of payroll issues and concerns about resident care, according to court filings from the agency.
Receivership often allows an individual or company to control the nursing home's business operations, including admissions, staffing and building improvements, experts said. It's not clear if a Cold Spring Hills receiver would be paid or receive a share of any business profits.
David Lawlor, president and chief executive of Connecticut-based Long Hill Company, which specializes in stabilizing troubled nursing homes, said "receiverships can take all different forms" and that "nursing homes are in such trying times that it takes a lot of creativity to allow facilities to be stabilized."
In some cases, Pomeroy said, receivers are selected by the department or by the court but Cold Spring Hills has asked for a specific individual to take over operations. Separately, the nursing home has yet to submit the certificate needed to facilitate an official change of ownership, she said.
State law stipulates the owner of a nursing home can ask the department for the appointment of a receiver "to take charge of the facility under whatever conditions as shall be found acceptable by both parties." It says the receivership would terminate at a date agreed upon by all parties.
Newsday reported last month that Cold Spring Hills in April submitted a proposed plan to the state for closing the facility, a move that prompted regulators to halt new admissions to the facility. But when the nursing home failed to finalize the plan, health officials withdrew the proposal. Admissions are expected to resume before the end of the month, Wickens-Alteri wrote Tuesday.
Shutting the doors of Cold Spring Hills would have left more than 330 elderly and vulnerable residents immediately needing a new place to live.
In September, an attorney for the ownership said in court that if a buyer isn't identified, the facility would be shuttered, Newsday also reported.
Richard Mollot, executive director of Manhattan-based Long Term Care Community Coalition, which advocates for nursing home residents, said the "specific receivership" application raises concerns.
"If the operator is failing to meet its obligations to residents, families and taxpayers, it should not have influence over who takes control of the facility to address and correct the issues," Mollot said.
In April, Nassau State Supreme Court Justice Lisa Cairo appointed Wickens-Alteri as part of the resolution of a lawsuit between New York Attorney General Letitia James and Cold Spring Hills.
James had charged in the suit that the facility neglected resident care and skirted state laws through a fraudulent business setup designed to enrich its owners.
Court records show the family of Bent Philipson has at least a controlling interest in the facility's ownership, but it's unclear if others maintain a minority interest.
The ownership of the financially struggling Cold Spring Hills Center for Nursing & Rehabilitation has asked the New York State Health Department to put the Woodbury facility under receivership, a move that would allow a new operator to take temporary control of Long Island's second largest nursing home, according to the state agency.
A court-ordered report, released late Tuesday by the nursing home's independent health monitor, said the proposed receiver is an individual who is considering purchasing the nursing home.
"The potential new owner has submitted an application to be appointed as the receiver of Cold Spring Hills while the full change of ownership application is submitted for review," wrote Lisa Wickens-Alteri, the independent health monitor, who declined to comment on the move.
Experts said a move to another party controlling the facility's operations and finances could provide a potential lifeline for the nursing home, which court records show has been on the brink of economic collapse for months during the search for a new owner.
WHAT NEWSDAY FOUND
- The ownership of Cold Spring Hills Center for Nursing & Rehabilitation has asked the state to name another party to temporarily control the troubled facility under what's known as a receivership.
- A state health department spokeswoman declined to disclose the identity of the "specific receiver" the current ownership requested.
- State health officials are reviewing the request and attorneys for the facility, which is for sale, didn't respond to requests for comment.
Last year, it got one of the largest federal financial penalties in the country for jeopardizing patient safety.
A health department spokeswoman declined to disclose the identity of the "specific receiver" requested by the current ownership. Cold Spring Hills' attorneys didn't respond to requests for comment.
"The department received documents from the operator’s counsel on Sept. 27 requesting the appointment of a specific receiver and subsequently requested additional information that was submitted to the department on Nov. 5," said health department spokeswoman Monica Pomeroy. "The department is reviewing the documents."
Pomeroy declined to provide copies of the documents and said a decision on approving the receivership request hasn't been made. Newsday filed a Freedom of Information Law request Monday seeking the documents.
Financially distressed nursing homes occasionally are put into a receivership, a remedy that allows a third party to operate the facility, most often during periods of litigation or financial distress, industry experts said.
For example, in July, the Massachusetts attorney general placed three nursing homes under temporary receivership, citing a litany of payroll issues and concerns about resident care, according to court filings from the agency.
Receivership often allows an individual or company to control the nursing home's business operations, including admissions, staffing and building improvements, experts said. It's not clear if a Cold Spring Hills receiver would be paid or receive a share of any business profits.
David Lawlor, president and chief executive of Connecticut-based Long Hill Company, which specializes in stabilizing troubled nursing homes, said "receiverships can take all different forms" and that "nursing homes are in such trying times that it takes a lot of creativity to allow facilities to be stabilized."
In some cases, Pomeroy said, receivers are selected by the department or by the court but Cold Spring Hills has asked for a specific individual to take over operations. Separately, the nursing home has yet to submit the certificate needed to facilitate an official change of ownership, she said.
State law stipulates the owner of a nursing home can ask the department for the appointment of a receiver "to take charge of the facility under whatever conditions as shall be found acceptable by both parties." It says the receivership would terminate at a date agreed upon by all parties.
Newsday reported last month that Cold Spring Hills in April submitted a proposed plan to the state for closing the facility, a move that prompted regulators to halt new admissions to the facility. But when the nursing home failed to finalize the plan, health officials withdrew the proposal. Admissions are expected to resume before the end of the month, Wickens-Alteri wrote Tuesday.
Shutting the doors of Cold Spring Hills would have left more than 330 elderly and vulnerable residents immediately needing a new place to live.
In September, an attorney for the ownership said in court that if a buyer isn't identified, the facility would be shuttered, Newsday also reported.
Richard Mollot, executive director of Manhattan-based Long Term Care Community Coalition, which advocates for nursing home residents, said the "specific receivership" application raises concerns.
"If the operator is failing to meet its obligations to residents, families and taxpayers, it should not have influence over who takes control of the facility to address and correct the issues," Mollot said.
In April, Nassau State Supreme Court Justice Lisa Cairo appointed Wickens-Alteri as part of the resolution of a lawsuit between New York Attorney General Letitia James and Cold Spring Hills.
James had charged in the suit that the facility neglected resident care and skirted state laws through a fraudulent business setup designed to enrich its owners.
Court records show the family of Bent Philipson has at least a controlling interest in the facility's ownership, but it's unclear if others maintain a minority interest.
Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.
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