An Alluring Lawsuit – The Department of Health


The Department of Health Claims Ignorance, Who Should be Suing Whom?

Thanks to our contributor, June 2, 2016

Crain’s New York is reporting in a piece that actually made us laugh, that the Department of Health of the city of New York is considering legal action against the Allure Group. The DOH claims it was”mislead by the Allure Group” when Allure misrepresented its intentions for the site in a “certificate of need application.”

We can do nothing on this one but shake our collective heads and then quell the four letter obscenities that are coming to mind so as not to type those same obscenities in this blog. Perhaps the officials at the Department of Health were educated in ultra-Orthodox yeshivas where they learned no English, math or science… or ethics. They can’t really be claiming ignorance now.

From what we have reported, they should have seen this coming a mile away. In fact, one source of information told us that:

The headline on the story would be laughable were it not for the abject ignorance and complicity of the Department of Health, the Public Health and Health Planning Commission which has continued to abet phony operators whose main business it to flip properties.
The list of the PHHPC’s legitimization of scoundrels and crooks is a mile long and everyone just looks the other way..

As we see it and have said it repeatedly, those who should have been paying attention  looked the other way on this deal also.


Controversial Lower East Side nursing home deal may lead to lawsuit


The state Department of Health is exploring taking legal action after it was misled by the Allure Group, a nursing home chain that recently sold the former Rivington House property and netted a $72 million profit. In response to issues raised by Manhattan politicians, a top DOH official asserted that Allure misrepresented its intentions for the site in a certificate-of-need application.

“The operator made representations of their intent to continue to operate the facility as a nonprofit nursing home. It appears that a number of these representations were misleading,” wrote DOH Deputy Commissioner Daniel Sheppard. DOH “is currently exploring all legal and other avenues available to address this situation,” he continued.

The Brooklyn for-profit nursing home operator and developer acquired the Lower East Side HIV/AIDS nursing home from the nonprofit VillageCare for $28 million before selling it to Slate Property Group, Adam America and China Vanke Co. months later. The deal is being investigated by state Attorney General Eric Schneiderman, the city Department of Investigation, city Comptroller Scott Stringer and U.S. Attorney Preet Bharara.

Sheppard’s letter came in response to a query from four Manhattan politicians—state Sen. Daniel Squadron, Congresswoman Nydia Velasquez, Manhattan Borough President Gale Brewer and Councilwoman Margaret Chin—who sent a letter in April seeking information from the state Department of Health on how Allure was able to close the facility.

It wasn’t the first time these politicians had fretted about the facility. In October 2014, they wrote to state Health Commissioner Dr. Howard Zucker to express concern about a dwindling number of nursing homes for their constituents. The Cabrini Center and the Bialystoker Nursing Home, which had a combined 335 beds, had already closed in the area.

To read the complete article click here.

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