Jewish Home
Files For Bankruptcy

As it continues trying to finalize a deal with a buyer in order to stay open, the Jewish Home For the Aged has filed a petition for protection under Chapter 11 of the federal bankruptcy code. Hundreds of jobs and nursing-home beds hang in the balance.

The 226-bed Davenport Avenue not-for-profit nursing home filed its petition on Monday. Chief Bankruptcy Judge Lorraine Murphy Weill granted a request to authorize the home to continue paying salaries and health benefits during the bankruptcy process.

The home listed its assets as between $1 and $10 million and its liabilities as between $10 million and $50 million in its filing.

Creditors currently have about $9 million of liens on the property, according to Jewish Home President Beth Goldstein.

She said Wednesday that the home sought bankruptcy protection to facilitate a potential sale. The home has been bleeding money for years and facing closure, like other New Haven nursing homes that rely heavily on Medicaid reimbursements. Since August it has been negotiating with an Illinois-based nursing home owner to buy the facility and keep it open. The home reported losing $845,000 in 2009, $830,000 in 2008, and $953,000 in 2007.

The state Department of Social Services has agreed to advance the home money to pay bills for four months to keep it open while negotiations continue, Goldstein said.

The state agreed to provide advances (that is, early payment of Medicaid billings) that approximate six weeks of such billings. State asked that sale be completed within three to four months,” confirmed DSS spokesman David Dearborn.

The state has been working closely with JHA to try to foster a sale of the facility, and is continuing to do so. It’s my understanding that there is a
prospective buyer. Any additional interested parties would also have the opportunity to bid on a sale under the auspices of the court.

Paul Bass Photo

About 185 of the bed’s 226 nursing beds are currently occupied. Another 40 to 60 seniors participate in adult day care programs. The home has over 200 unionized workers.

The Chapter 11 filing included 27 pages listing creditors. Some of the bigger creditors include Select Rehabilitation of Northfield, Ill., $381,162.92; Omnicare of Connecticut (based in Columbus, Ohio), $232,977.90; Medline Industries of Pittsburgh, $172,955.71; Simplex Financial Services of Chicago, $160,622.66; and Murtha, Cullina, Richter of Hartford, $128,133.80. The list also includes $87,984.19 in outstanding debt to the Hartford-based law firm Siegel, O’Connor, O’Donnell & Beck.

Meanwhile, employees have been going without health insurance in February, according to Deborah Chernoff of District 1199 of the New England Health Care Employees Union SEIU, which represents the Jewish Home workforce. Judge Murphy’s ruling was designed to enable the home to pay those bills.

It’s not a huge surprise,” Chernoff said of the filing. She said that a closing (rather than sale) of the home would hit New Haven hard in two ways: the further loss of nursing beds and the loss of well-paying jobs. The state decided to close West Rock Health Care Facility last year.

Sign up for our morning newsletter

Don't want to miss a single Independent article? Sign up for our daily email newsletter! Click here for more info.


Post a Comment

Commenting has closed for this entry

Comments

Avatar for sharon_bass@att.net

Avatar for Abdelnoir

Avatar for md_1-53@comcast.net

Avatar for concerned_community@hotmail.com

Avatar for md_1-53@comcast.net

Avatar for Anstress Farwell

Avatar for know it well

Avatar for md_1-53@comcast.net