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.
Care of those living in The Harborside's nursing home is declining amid fears that residents' life savings will be lost as negotiations drag on for a sale of the bankrupt retirement community in Port Washington, an attorney for residents said 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. Aboulafia represents 43 current and former residents.
“Residents don’t feel they are getting the quality of care that they need. They aren’t confident about the care that they will receive in the future” should a sale be finalized, she said during a hybrid court hearing.
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.
The lawyers also disagreed over whether the indoor pool is in working order.
Nanes said The Harborside management appreciates “the stress” 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 would-be buyers and details about their offers haven’t been divulged despite repeated requests from the bankruptcy judge.
Under questioning by Judge Alan S. Trust, it was revealed that one of the bidders has proposed to change The Harborside’s operational status from nonprofit to for-profit.
Such a 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 a year ago. There are no for-profit retirement communities like The Harborside in New York State.
Officials at Iowa-based LCS 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 on Wednesday.
Nanes, The Harborside attorney, replied, “We are not seeking approval for a transaction that wasn’t approved by the [state] Department of Health. There are entirely different circumstances around the [new] for-profit bidder.”
She added that The Harborside has sought input from the health department but so far “hasn’t received anything substantive.”
The facility opened in 2010 but struggled to fill its 329 units because of the aftereffects of the Great Recession, particularly on 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.
Care of those living in The Harborside's nursing home is declining amid fears that residents' life savings will be lost as negotiations drag on for a sale of the bankrupt retirement community in Port Washington, an attorney for residents said 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. Aboulafia represents 43 current and former residents.
“Residents don’t feel they are getting the quality of care that they need. They aren’t confident about the care that they will receive in the future” should a sale be finalized, she said during a hybrid court hearing.
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.
The lawyers also disagreed over whether the indoor pool is in working order.
Nanes said The Harborside management appreciates “the stress” 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 would-be buyers and details about their offers haven’t been divulged despite repeated requests from the bankruptcy judge.
Under questioning by Judge Alan S. Trust, it was revealed that one of the bidders has proposed to change The Harborside’s operational status from nonprofit to for-profit.
Such a 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 a year ago. There are no for-profit retirement communities like The Harborside in New York State.
Officials at Iowa-based LCS 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 on Wednesday.
Nanes, The Harborside attorney, replied, “We are not seeking approval for a transaction that wasn’t approved by the [state] Department of Health. There are entirely different circumstances around the [new] for-profit bidder.”
She added that The Harborside has sought input from the health department but so far “hasn’t received anything substantive.”
The facility opened in 2010 but struggled to fill its 329 units because of the aftereffects of the Great Recession, particularly on 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.
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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