Cold Spring Hills nursing home sale decision expected 'soon,' health monitor says

A potential buyer for financially troubled Cold Spring Hills Center for Nursing & Rehabilitation has begun touring the Woodbury nursing home and a decision on the sale of the building is expected "soon," according to a report from the facility’s independent health monitor.

The report, released earlier this month, details the extent of Cold Spring Hills’ financial concerns, including major commercial repairs that have yet to begin, vendors who have not been paid and employees no longer accruing sick time.

In her report, Lisa Wickens-Alteri, Cold Spring Hills' court-ordered health monitor, said a change of ownership is needed as the "current path of delays is not sustainable." 

The report does not identify the name of the potential buyer and indicates an agreement for the sale of the facility — Long Island's second largest nursing home — has not been reached.

"Potential new owners have come to tour the building to meet the staff, interview the [independent health monitor], examine the building and view the grounds, but taking on a campus of this size, requiring such a large capital investment is an unnerving decision, especially given the scrutiny the facility lives under," Wickens-Alteri wrote in her report to state Supreme Court Justice Lisa Cairo. 

In a previous report to Cairo, Wickens-Alteri wrote a potential buyer had been approved by the state Health Department and its Public Health and Health Planning Council to purchase and operate a different nursing home in New York State, "demonstrating they passed character and competence reviews."

Cairo held a status update hearing on Cold Spring Hills last week. Details of the hearing were not immediately available.

Monica Pomeroy, a spokeswoman for the state Health Department, said a Certificate of Need — which governs the acquisition of health care facilities — must be filed before a review of any sale can be undertaken.

"At this time, a CON has not been filed," she said.

Wickens-Alteri and attorneys for Cold Spring Hills each did not respond to requests for comment.

The latest health monitor report also provides the most detailed accounting to date of Cold Spring Hills' financial woes.

They include vendors who have not been paid and are now refusing to continue services; a commercial dishwasher that needs to be replaced; a pair of elevators that need repairs and staff members who complain they haven't received their uniform allowances or sick time payouts and are no longer accruing sick time. Most Cold Spring Hills employees are members of the 1199SEIU labor union.

The administrator of the facility's Adult Day program and the nursing home's director of risk resigned last month, along with six nursing staffers, Wickens-Alteri wrote. But, eight employees from Brooklyn-based Five Star Nursing, which terminated its services to Cold Spring Hills due to nonpayment, transitioned to nursing home staff members, she wrote.

"Ongoing uncertainty regarding the facility's future, compounded by an aging infrastructure and outstanding vendor payments continues to present challenges," Wickens-Alteri wrote, adding the exodus of staff appears to have "plateaued."

Five Star Nursing did not respond to a request for comment.

"Despite the uncertainty, 1199SEIU caregivers continue providing quality care to Cold Spring Hills’ residents," said Rose Ryan, a union spokeswoman.

Since June 2021, the Centers for Medicare & Medicaid Services has fined Cold Spring Hills $614,177 — more than any nursing home on Long Island and the second-most in the state.

Staff attrition, the report states, has also forced a greater reliance on overtime, increasing costs further.

"The rumors and a lack of a clear plan for the facility's future have profoundly impacted staff morale," Wickens-Alteri wrote. "Many employees are seeking reassurance about job security, which cannot yet be provided. Some staff have become disengaged, simply going through the motions of their daily tasks while discussing their concerns with colleagues. These conversations can fuel rumors and have the potential to distract from resident care."

In May, Cold Spring Hills served 388 residents across four buildings. It now cares for 343 residents consolidated in three buildings, the health monitor wrote. The reduction of 45 residents in the 588-bed facility accounts for about $15,000 in daily lost revenue, she said.

In April, Cairo appointed Wickens-Alteri, president of Capital Health Consulting LLC in Albany, as Cold Spring Hills' independent health care monitor, focused on improving resident care, maintaining sufficient staffing and ensuring management follows state and federal guidelines. Wickens-Alteri is mandated to issue monthly reports about the condition of the facility.

Wickens-Alteri's appointment was part of the resolution of a lawsuit between state Attorney General Letitia James and Cold Spring Hills that included a more than $2 million financial penalty to the nursing home's owners. James charged in the suit that the facility neglected resident care and skirted state laws through a fraudulent business setup designed to enrich its owners.

Bent Philipson, a nursing home magnate, purchased the Woodbury facility in 2016, along with partner Benjamin Landa.

James asked the court to penalize the nursing home tens of millions of dollars, install a financial monitor and have one of its owners removed — all of which were rejected by the judge.

Correction: Bent Philipson is one of the owners of the Cold Spring Hills Center for Nursing & Rehabilitation. An earlier version of this story had an incorrect name.

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.