Temporary extension for Cold Spring Hills workers' health insurance; AG warns nursing home residents at risk

More than 440 employees of Cold Spring Hills Center for Nursing & Rehabilitation who were set to lose their employer-paid health insurance on Friday have received a temporary reprieve after the facility made a partial payment to a union insurer, extending benefits through Sept. 15, officials said.

Meanwhile, a state Attorney General filing earlier this month said the insurance dispute has put residents' safety at risk, accusing the owners of "intentionally running Cold Spring Hills into the ground."

Cold Spring Hills, Long Island's second-largest nursing home, made a $750,000 payment to the 1199 SEIU National Benefit Fund on Aug. 15, according to union spokeswoman Mindy Berman.

"[The facility] has not made a commitment to make any further payments," said Tim Rodgers, vice president of the union’s nursing home division. "The workers, with the union, are still urging the New York State Department of Health to intervene and appoint a receiver."

The company continues to owe about $4.5 million in arrears for union members' insurance including health, dental, vision, prescription, disability and paid family leave benefits, officials said. 

Cold Spring Hills and its attorney did not respond to requests for comment.

The nursing home, Rodgers previously said, is contractually obligated to provide health insurance and to make payments to the National Benefit Fund for its 443 union employees.

"And if they cannot do that and they cannot effectively operate the facility, then we need the state to step in," Rodgers said this month as he reiterated calls for the state to appoint an emergency receiver to manage the facility if the owners won’t pay for health insurance.

State Health Department spokeswoman Monica Pomeroy in a statement said: “The Department takes the concerns of residents and the staff of Cold Spring Hills Center for Nursing & Rehabilitation seriously and has been in contact with the parties to glean a full understanding of the situation."

Dozens of Cold Spring Hills health care workers, including nurses, housekeepers, dietary and recreation aides, engaged in an 11-day informational picket earlier this month outside of the Woodbury facility to draw attention to the insurance dispute. 

Sharlene Thampi, a registered nurse at Cold Spring Hills for the past nine years, said Thursday that losing her health insurance would be a "disaster" and could prompt her to find work elsewhere. Several of Thampi's colleagues have already left because of the dispute, she said, and more are expected to follow at a time when the facility is already facing a severe staffing shortage.

"Leaving this facility as a [registered nurse] is very detrimental to the facility, as well as to the patients we take care of and to the staff that work with us," said Thampi, of New Hyde Park, who is a single mother of two children, ages 12 and 13.

The union is planning to host a meeting with lawmakers and state officials regarding the dispute on Wednesday in Huntington.

Cold Spring Hills has found itself at the center of repeated controversies in recent years.

In December, State Attorney General Letitia James filed a lawsuit alleging the owners and management of the nursing home diverted more than $22.6 million in Medicaid and Medicare funds for residents' care by using a fraudulent network of a dozen companies to conceal upfront profit taking.

In an Aug. 2 court filing, the AG's office said the health insurance dispute has demoralized staff, exacerbated employee attrition and jeopardized patient care.

"Respondents are intentionally running Cold Spring Hills into the ground and putting residents at additional risk," wrote Brian Steinwascher, special assistant attorney general in the Medicare Fraud Control Unit.

The AG's lawsuit comes 28 months after Newsday’s investigation — “Crisis, Care and Tragedy on LI” — exposed the impact of the pandemic on the Cold Spring Hills residents, families and staff. The investigation also revealed the facility’s place in the owners’ collection of profit-making nursing homes.

By Robert Brodsky

robert.brodsky@newsday.com@BrodskyRobert

Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.