Harlem Nursing Home Fights Back Against Attorney General's Attempt to Block Sale

HARLEM, NY — A Harlem nursing home is challenging the New York Attorney General office's decision to prevent its sale to a company that runs for-profit health centers.

The Greater Harlem Nursing Home and Rehabilitation Center filed a lawsuit Thursday in New York State Supreme Court to quash a subpoena from the Attorney General that would prevent the Allure Group from acquiring the nursing home. The Attorney General's office filed the subpoena this week due to concerns over a separate scandal that the Allure Group is involved in regarding the sale of one of its clinics to a private residential developer.

A petition filed by the nursing home claims that the home is operating at a loss due to "changes in the healthcare industry," that have increased operating costs and decreased reimbursements from Medicare and Medicaid.

"The Board of Directors determined that it was in the best interests of the not-for-profit entity to seek new ownership among a select group of experienced, qualified nursing home operators," reads the document.

Apparently, in the eyes of the state, the nursing home chose the wrong operator to sell to.

The Attorney General's office claims that the sale of the nursing home to the Allure Group "would violate significant procedural provisions" of the state Not-For-Profit Corporation Law, in court documents filed Monday.

Due to the Allure Group's role in the recent closings of two non-profit health centers — the Rivington House in Lower Manhattan and CABS Nursing Home in Bed-Stuy — the Attorney General's office beleives the sale may pose a threat to Greater Nursing Home in Harlem, according to court documents filed earlier this week. The Allure Group announced it was acquiring the Greater Harlem Nursing Home in 2014.

In February 2015, the Allure Group purchased the Rivington House for $28 million, according to a city Department of Investigations report. Nine months later the Allure Group paid the city $16.15 million to remove a deed restricting the property for non-profit use. Then in February 2016 the Allure Group sold the Rivington House property to private developers for $166 million, the investigation reported. The Allure group had led the city to believe it had plans to run the Rivington House as a for-profit health center.

[Photo: Google Maps street view circa May 2016]