A Nassau County judge has denied a request from state Attorney General Letitia James’ office to appoint independent financial and health care monitors at Cold Spring Hills Center for Nursing & Rehabilitation in Woodbury, arguing that the measure was “unjustified at this stage”.
The Oct. 20 ruling by state Supreme Court Justice Lisa Cairo is a significant victory for Long Island’s second-largest nursing home, which still faces a lawsuit from the attorney general’s office, as well as ‘to the state Department of Health’s efforts to have the court appoint a guardian to operate Cold Spring Hills. The Health Department is also seeking to revoke the troubled facility’s operating license.
The Attorney General’s Office continued Cold Spring Hills in December, alleging that the facility’s owners and management embezzled more than $22.6 million in Medicaid and Medicare funds for residents’ care by using a fraudulent network of a dozen companies to conceal takings initial profits.
Meanwhile, nursing home officials have refused to make payments on time to the National Benefit Fund of 1199 SEIU, the union that provides health care to its 440 employees. The months-long dispute has prompted dozens of staff members to find or seek other employment. Earlier this month, Cold Spring Hills made a payment to the Benefit Fund, extending its health care until December 15.
In its ruling last week on the health and financial observers, Cairo wrote that while the allegations from the attorney general’s office “paint a picture of potential misuse of the establishment’s funds for personal, in the absence of complete conclusions on the facts and in light of the problem now resolved. of imminent loss of employee benefits, the court finds that the large-scale emergency measures requested by this order to show cause are unwarranted at this stage.
An attorney for Cold Spring Hills declined to comment on the decision. In court filings, the institution’s lawyers suggested that appointing attorney general monitors was a “draconian remedy” that would give watchdogs “unlimited power” and likely lead to the closure of the 588-bed establishment.
The attorney general’s office declined to comment.
In its ruling, Cairo also ordered Cold Spring Hills to make required payments to the Benefit Fund “in a timely manner” and not violate local, state or federal laws and regulations.
In a statement, the union said Cairo’s order “will allow caregivers to continue providing care to Cold Spring Hills residents while ensuring they are able to protect their health and that of their families. It Now is the time for Cold Spring Hills property owners Spring Hills will complete the process of hiring a receiver to operate the facility.
The court has yet to rule on the Health Ministry’s request that a caretaker, or temporary manager, be appointed to manage the facility. The Health Ministry declined to comment.
But in an Oct. 13 letter to Cairo, Cold Spring Hills attorney John Martin said his client was engaged in discussions with at least two potential buyers of the nursing home, each of whom would serve as a temporary receiver for the establishment, which would make it unnecessary for a Ministry of Health guard. The potential buyers have not been identified.
Department of Health records identify Cold Spring Hills as a one star establishment — its lowest ranking in categories such as quality of care, preventive care and resident safety.
Since September 2019, the state has received 207 complaints about Cold Spring Hills and issued 32 citations to the facility, records show. The statewide average during that time was 22 citations.
Both parties are due back in court on December 4.
