Cold Spring Hills Center for Nursing & Rehabilitation will close May 15 unless a new agreement is reached with labor union, records show

Long Island's second-largest nursing home, the financially troubled Cold Spring Hills Center for Nursing & Rehabilitation in Woodbury, has told the state Health Department it will close in May unless its new operator and nearly 500 employees can agree on a modified labor agreement, court records show.
The move comes after Cold Spring Hills last month sought bankruptcy protection and found an operator willing to take over — and ultimately purchase — the facility.
Court records filed Monday in the nursing home’s bankruptcy case indicate the state Health Department on Jan. 23 approved Eliezer Jay Zelman, who owns three other nursing homes in the state, as the facility’s temporary receiver. Zelman, who did not respond to requests for comment Tuesday, would take over operations and payroll obligations.
Zelman also submitted an application to the department seeking to purchase the facility for $10, although the agreement calls for him to take on $72 million in mortgage debt on the property.
WHAT NEWSDAY FOUND
- Cold Spring Hills Center for Nursing & Rehabilitation will close its doors by May 15 if the proposed new operator can't reach a modified collective bargaining agreement with the nursing home's labor union.
- The Woodbury facility, Long Island's second-largest nursing home, has faced financial peril for years and filed for Chapter 11 bankruptcy protection last month amid hundreds of thousands in weekly losses.
- The closure plan would need approval from the state Health Department and would force nearly 300 elderly and disabled residents into other long term care facilities across the region.
Closure plan submitted
Court records stipulate that Zelman has informed Bent Philipson, Cold Spring Hills' primary owner, and his son, Avi Philipson, the business' managing member, that he will not move forward with the receivership until he receives a modified collective bargaining agreement with 1199SEIU United Healthcare Workers East, which represents most of the facility's employees.
Schuyler Carroll, an attorney for Cold Spring Hills, said the Philipsons are incurring about $625,000 in losses per week and are expected to run out of money by Monday.
"Closing the facility is in the estate’s best interest due to the substantial losses being incurred on a daily basis to operate the facility," Carroll wrote in a Friday court filing. "As much as the debtor wants to consummate the receivership and sale, it is no longer certain whether that will happen and it depends on events entirely outside of the debtor’s control. The debtor simply cannot continue incurring these losses and, therefore, must proceed to obtain approval of the closure plan as an alternative."
Barring a modified agreement — the two sides are scheduled for mediation on Thursday — the nursing home would close its doors on May 15, court records show. All remaining residents would be relocated to alternative long term care facilities. The facility is down to 299 residents, while 65 people are enrolled in an adult day health care program.
In a statement, 1199SEIU president George Gresham said the union will press on toward an agreement.
"The caregivers at Cold Spring Hills have continued to provide outstanding care to residents despite the owner’s refusal to meet their obligations, including for the workers’ contractually required health benefits," Gresham said. "We continue to meet with a potential buyer to reach an agreement that will provide good wages and benefits and ensure stability in the workforce which is essential to providing proper resident care."
In Jan. 24 court paperwork, the union said it had discussed modifications to the bargaining agreement with Zelman, but he wants "to eliminate all scheduled wage increases and drastically slash benefits," including adopting a more expensive employee-funded health insurance plan.
In addition, Zelman wants to remove positions from the bargaining unit, the union said, including registered nurses, physical therapists, physical therapy assistants, occupational therapists, certified occupational therapy assistants, respiratory therapists, respiratory technicians and dietitians.
Zelman has not commented on specific modifications he wants in the contract.
"We hope that mediation is successful and that we can move forward with Plan A, which is to move forward with the receivership sale," Timothy Karcher, an attorney representing Zelman, said at a bankruptcy court hearing Tuesday. "But bearing in mind that we may not get there ... we need to at least put everybody on notice as to what may happen if they're not successful."
Residents to find new homes
Carroll said in the court filing that the nursing home submitted a closure plan to the Health Department, which must approve it, on Friday. A department spokesperson declined to comment.
"The closure plan calls for personnel at the facility to use their best efforts to provide each resident/registrant with at least three alternative providers, and to assist each resident in identifying appropriate alternate placement," Carroll wrote. "Pursuant to the closure plan, if at all possible, each resident will be transferred to the facility of resident’s choice."
This is not the first time Cold Spring Hills has announced plans to close its doors.
The facility first asked the department for approval to close on April 23 but elected not to proceed with the plan, instead seeking to find a new operator and buyer. At the time, the 588-bed facility had seen its resident census drop to 423.
In late December, with the facility deep in debt, unwilling to take on new residents and requiring $15 million in upgrades, the nursing home announced plans for an "emergency evacuation" of its residents only days before Christmas and Hanukkah. The plan called for the nursing home to close its doors on Dec. 31 and lay off its entire workforce.
On Dec. 20, Nassau state Supreme Court Justice Lisa Cairo issued a temporary restraining order sought by state Attorney General Letitia James, blocking the nursing home from discharging or transferring its residents and ordering the facility to remain operational.
Days later, Cold Spring Hills, struggling to meet its $1.4 million weekly payroll, filed for Chapter 11 bankruptcy protection from its creditors.
Assistant Attorney General Christina Pinnola said the priority must be the health and safety of nursing home residents.
"There are several hundred residents who reside at Cold Spring Hills, many of which ... are very vulnerable and elderly," Pinnola said at Tuesday's hearing. "They have a lot of health challenges."
Cold Spring Hills has been in financial peril for years, records show. In December 2022, a lawsuit from James' office charged that the nursing home neglected resident care and skirted state laws through a fraudulent business setup designed to enrich its owners.
In April, Cairo imposed a $2 million penalty as part of the lawsuit's resolution and appointed an independent health monitor for the facility.

Things to do now on LI Rock climbing? Indoor beach volleyball? Water parks? Arts and crafts? NewsdayTV's Elisa DiStefano and Newsday deputy lifestyle editor Meghan Giannotta have your look at ways to spend your winter break.

Things to do now on LI Rock climbing? Indoor beach volleyball? Water parks? Arts and crafts? NewsdayTV's Elisa DiStefano and Newsday deputy lifestyle editor Meghan Giannotta have your look at ways to spend your winter break.