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June 07, 2016

N.Y. Contests Company’s Plan to Buy Nonprofit Nursing Homes

New York State regulators are seeking to block the sale of two nursing homes to a private company already under investigation over a transaction that led to another nonprofit health-care center being turned into luxury apartments, reports The Wall Street Journal. The state attorney general’s office notified the Greater Harlem Nursing Home & Rehabilitation Center and Brooklyn’s Saints Joachim & Anne Nursing and Rehabilitation Center in a letter Monday that it would oppose the planned purchase by the Allure Group.

The letter cited “grave concerns” that Allure, a for-profit nursing-home operator, would not uphold a pledge to maintain the two buildings as care centers. The attorney general’s office as well as New York City and federal authorities are looking into Allure’s purchase last year of Rivington House, a nonprofit Manhattan center for HIV/AIDS patients. The company in turn sold that building to a development firm that plans to turn it into apartments.

Allure has denied allegations by Mayor Bill de Blasio’s administration that it misled city officials over its intentions for Rivington House and says it will cooperate with investigators. Sales of charitable assets to for-profit companies must secure state approval in New York. Permission from the attorney general’s office is not required, but the Brooklyn and Harlem facilities asked it to weigh in on the proposed sales.