The ownership of the financially troubled Cold Spring Hills Center for Nursing & Rehabilitation has asked the New York State Department of Health to place the Woodbury facility in receivership, a move that would allow a new operator to take temporarily control of Long Island’s second-largest nursing home. according to the state agency.

Experts have said the move to another party controlling the facility’s operations and finances could provide a potential lifeline for the nursing home, which court records show has been on the brink of economic collapse since months while she looked for a new owner.

Last year it happened one of the most significant federal financial penalties in the country for endangering patient safety.

A Department of Health spokeswoman declined to disclose the identity of the “specific recipient” requested by the current owner. Cold Spring Hills attorneys did not respond to requests for comment.

“The ministry received documents from the operator’s lawyer on September 27 requesting the appointment of a specific receiver and subsequently requested additional information which was submitted to the ministry on November 5,” the spokesperson said. from the Ministry of Health, Monica Pomeroy. “The department is reviewing the documents.”

Pomeroy declined to provide copies of the documents and said no decision regarding approval of the receivership request had been made. Newsday filed a Freedom of Information Act request Monday to obtain the documents.

Financially distressed nursing homes are sometimes placed in receivership, a remedy that allows a third party to operate the facility, most often during periods of litigation or financial distress, industry experts said.

For example, in July, the Massachusetts attorney general placed three nursing homes under temporary receivership, citing a litany of payroll issues and concerns about resident care, according to agency court documents.

Receivership often allows an individual or company to control the nursing home’s business operations, including admissions, staffing and building improvements, experts said. It’s unclear whether a Cold Spring Hills receiver would be paid or receive a share of the company’s profits.

David Lawlor, president and CEO of Connecticut-based Long Hill Company, which specializes in stabilizing troubled nursing homes, said that “receiverships can take all different forms” and that “nursing homes are going through such a difficult time that it takes a lot of creativity to implement them.” enable the installations to be stabilized.”

In some cases, Pomeroy said, receivers are selected by the department or the court, but Cold Spring Hills has requested that a specific person or company take over operations. Additionally, the nursing home has not yet submitted the necessary certificate to facilitate a formal change of ownership, she said.

State law says the owner of a nursing home can petition the department for the appointment of a receiver “to take charge of the facility under any conditions mutually acceptable.” It specifies that the receivership will end on a date agreed to by all parties.

Newsday reported last month that Cold Spring Hills submitted a proposed plan to the state in April for closing the facility. But when the nursing home failed to finalize the plan, health officials withdrew the proposal.

By closing the doors to Cold Spring Hills, more than 330 elderly and vulnerable residents would have immediately needed new housing.

In September, a lawyer for the property told the court that if a buyer was not identified, the faclity would be closed, Newsday also reported.

Richard Mollot, executive director of the Manhattan-based Long Term Care Community Coalition, which advocates for nursing home residents, said the request for a “specific receivership” raises concerns.

“If the operator fails to meet its obligations to residents, families and taxpayers, it should have no influence over who takes control of the facility to resolve and correct the problems,” Mollot said.

It’s unclear what the receivership would mean for Lisa Wickens-Alteri, the nursing home’s independent health monitor. A spokesperson for Wickens-Alteri declined to comment.

In April, Justice Lisa Cairo of the Nassau State Supreme Court appointed her in resolving a lawsuit between New York Attorney General Letitia James and Cold Spring Hills.

James had accused in the trial that the facility neglected resident care and circumvented state laws through a fraudulent business setup designed to enrich its owners.

Court records show Bent Philipson’s family has at least a majority stake in the property’s ownership, but it’s unclear whether others maintain a minority stake.

Robert Brodsky is a breaking news reporter who has been with Newsday since 2011. He is an alumnus of Queens College and American University.