New York nursing home sues AG over blocked sale
The controversial pending sale of a Harlem nursing home has led its owners to sue the state attorney general.
The $32 million sale of The Greater Harlem Nursing Home was approved by New York Attorney General Eric Schneiderman in May. It has since been reversed after it was discovered the buyer, The Allure Group, allegedly tried to conceal its identity during the transaction.
The Allure Group is currently under investigation by Schneiderman for buying the Rivington Street Nursing Home in New York, NY, and selling it for housing developments — and making $72 million in profit. That sale was permitted after the mayor's office lifted deed restrictions, which designated the building be used strictly for a not-for-profit residential healthcare center.
Schneiderman is now requiring the Harlem nursing home to disclose emails and other documents related to the blocked sale of its own facility, under suspicion Allure may be attempting to flip the property. A lawyer for the nursing home told the New York Post that despite the Attorney General's concerns he has not given them “any indication whatsoever that any violation or any statute actionable or prosecutable has occurred” and should not be allowed to postpone the sale.
“As our office has documented in great and troubling detail, Allure made clear and repeated promises to continue the operation of nursing homes for the benefit of a vulnerable population — promises that proved to be false,” said Matt Mittenthal, press secretary for the attorney general's office.
Mittenthal added that any effort to hinder the investigation into the sale of the Harlem home would be “vigorously opposed.”
Allure offered to buy the privately held Harlem nursing home in 2014 after the owners listed the property “after years of declining reimbursements from Medicare and Medicaid, increased operating costs, and declining patient populations,” according to court documents.
The developer has offered to buy the 175-bed facility for more than $10 million over its appraised value.