The sign outside the Cold Spring Hills Center for Nursing and Rehabilitation, in Woodbury (Photo by Getty Images)
The Cold Spring Hills Center for Nursing & Rehabilitation in Woodbury filed for bankruptcy on Jan. 2 after receiving a temporary restraining order from the state. The facility has accumulated more than $50 million in debt, according to reports.
Due to financial troubles, the center announced in December it would close operations by Dec. 31, with plans to begin layoffs on Dec. 23. The center planned to evacuate its approximately 320 residents, many of whom are elderly and disabled, within the weeklong time frame.
On Dec. 20, the state issued a temporary restraining order to keep staff and residents in place and maintain payroll obligations until Jan. 6.
The nursing home has agreed to stop immediate evacuation plans, according to previous reports.
“The State Health Department must take all steps necessary to keep the doors of this critical healthcare facility open for its residents. Anything less is unacceptable,” said Town of Oyster Bay Supervisor Joseph Saladino.
The Woodbury facility has 588 beds and a 56% occupancy rate, according to the state Health Department. With approximately 320 residents, 26 residents are dependent on ventilators, according to the state.
Cold Spring Hills’ resident population is well above the state average, which is about 163, according to the Medicare website.
“The current state of the Cold Spring Hills nursing home is deeply distressing, and I have profound concerns about the well-being of its residents – many of whom are among our county’s most vulnerable people,” said Deputy Minority Leader Arnold Drucker of the Nassau Legislature.
“While I cannot comment on the legal actions that are being taken in this matter, it is essential for any outcome of these proceedings to provide safety and stability for the residents and ensure that all of their medical and cognitive needs are met,” he said.
According to the Medicare website, the center received a poor 1-star rating, based on health inspections, staffing and quality measures. During a 2023 health inspection, the center received 24 health citations. The state average is 6.2, according to the website.
The center was sued for resident abuse and neglect in December 2022 by state Attorney General Letitia James. The suit said the center diverted over $22 million in Medicaid and Medicare funds, leading to resident neglect.
“Cold Spring Hills’ owners put profits over patient care and left vulnerable New Yorkers to live in heartbreaking and inhumane conditions,” James said in a 2022 press release.
The center’s financial trouble are largely attributed to the 2022 lawsuit, according to Newsday.
On Jan. 2, Cold Spring Acquisition, LLC filed for Chapter 11 bankruptcy protection. Under Chapter 11 bankruptcy, the debtor is allowed to continue operating its business while reorganizing finances and paying off its debts.
The nursing home had reportedly been looking for a buyer prior to court proceedings.
Cold Spring Hills is expected to return to bankruptcy court on Jan. 14 and will return to State Supreme Court on Jan. 22 to discuss the temporary restraining order, according to previous reports.
Attempts to contact the nursing home’s administrative staff before presstime were unsuccessful.