A new sale has been proposed for Port Washington’s bankrupt retirement facility, The Harborside, but it could close the facility’s assisted care units a least temporarily if approved, according to court documents.
The proposed sale has been denounced by residents, who for months have expressed fears over losing their homes and separating couples split between independent and assisted care facilities.
”We are devastated by this worst case, totally unnecessary and unwelcome holiday ‘gift’ from the [Department of Health] and Gov. Hochul,” Harborside resident Joyce Shapiro said.
Focus Healthcare Partners, a Chicago-based company with retirement facilities across the country, proposed a purchase of the facility for $80 million, according to a bankruptcy court filing on Dec. 12. A prior sale was under way with Life Care Services that would have sold the facility for $24 million more, but fell through in October due to state health regulations.
The Harborside is a 329-bed facility which houses about 180 residents. The average age of those residing at the facility is 90.
The Port Washington retirement home has filed for bankruptcy three times in the past decade and has nearly 200 residents in fear of losing their homes.
The new purchase agreement includes a closure of the facility’s assisted living, memory care and skilled nursing components. This would have to meet requirements set by the New York Department of Health as traditional in a bankruptcy case sale.
Focus Healthcare Partners is pursuing an expedited purchase of the facility, which means they will not acquire assisted living, memory care or skilled nursing licenses prior, according to court documents. None of these services will be offered at the time they acquire the property.
Forensic Healthcare Partners said in court documents they do intend to apply for these licenses once the sale is closed, but the sale contract is not contingent on them providing these services nor taking in residents with these needs in the future.
The Harborside is required to submit a closure plan to the state which would detail the transfer of residents who are in facilities shutting down.
Under this new sale proposal, only independent living units and its residents would be able to remain at the time the property is transferred if this sale is approved.
The sale would provide independent living residents a new rental agreement. The agreement would limit base rental costs to a 5% increase, so long as the resident remains in their same unit.
If less than 45 residents resign the rental agreement with the Focus Healthcare Partners, then the facility buyer would receive a $5 million credit on their purchase.
The prior sale with LCS would have kept all facilities opened at The Harborside, as well as reimburse entrance fees to the families of deceased residents. The entrance fee refunds amount to tens of millions of dollars.
The sale agreement with Focus Healthcare Partners does not include the entrance fee reimbursements, according to court documents.
“We are scared now, Gov. Hochul, particularly now that, in spite of your statement of assurance, people will be evicted from the Harborside if this proposed deal is granted by the court,” Shapiro said. “Again, it is hard for us to imagine just who the DOH thought they were looking out for when as a direct consequence of their actions this community was destroyed, well over $100-plus million lost, people unemployed and widespread misery ensued. We hold the governor, who never once spoke to us or lifted a finger to help, and the DOH totally responsible for this travesty and call on our fellow citizens to hold them accountable lest they similarly find themselves homeless and financially broken as a result of the future “protections” by NY State.”
Residents had previously asked Hochul to reopen the prior sale with LCS and implement a state facilitator for the sale.
The sale of the financially unstable community was awarded to Life Care Services, otherwise known as LCS, in late December 2023 after the Des Moines-based company won an auction for the 329-unit development earlier in the year.
The deal was then revoked by LCS in August, according to Newsday, due to prolonged waiting for approvals from the state Health Department and Department of Financial Services.
The state Health Department rejected their application in October.
