By Jack Cumming

If you’re active in senior living, you’ve likely been following the sad saga of the residents of The Amsterdam at Harborside, a struggling CCRC in Port Washington, New York. It may now be reaching its tragic conclusion.

Thinking Backwards

According to a February 20, 2025, Newsday article, those residents who are owed cash as refunds are to be favored over those dependent on care services. The new owners will be closing the nursing home, assisted living, and dementia care by March 14. It’s hard to imagine the trauma for bewildered residents who will suddenly be thrown out. It’s a sad reality that regulators turned down an offer from Life Care Services, leaving the bankruptcy judge without good options.

According to the Newsday article, “Residents and families of deceased residents will be paid about 25% of the entrance fee refunds owed to them.” Independent living residents will be allowed to continue living in their units. They will not be evicted. However, those who are frail or confused are to be summarily moved out. What was a CCRC will now be little more than an age-restricted apartment house with amenities.

Regulatory Intervention

It’s unclear why the New York state regulators turned down Life Care Services (LCS). The Newsday article suggests that the regulators may still have to approve the deal. Sifting through the facts that have been public, it appears that although New York long prided itself on its regulation of CCRCs, the state has not been constructive in this case.

The new owners, now approved by the bankruptcy court, have put the onus on the state for their having to close the most critical units in senior living. Again, as reported by Newsday, Curt Schaller, co-founder of the acquiring partnership, said the buyers didn’t want the sale to collapse in a regulatory dispute with the state health department, which is said to be what happened last fall with LCS. He indicated that he and his partners would like to seek the state licenses required to reopen the assisted living area and dementia care unit.

My Personal Note

That commitment by the buyers sets in sharp relief the sad tragedy that is unfolding as we can only watch from the sidelines. All we can do is to pray for these poor stricken souls who have been so badly served. Over 10 years ago, a resident organization, the National Continuing Care Residents Association, approached LeadingAge, the providers’ trade association, with a proposal to work together on a plan to prevent such an occurrence.

Among several ideas was an exposure draft of a plan to develop a guaranty program like those that protect life insurance policyholders and bank depositors. LeadingAge didn’t respond, ignored an ongoing resident-led discussion of these ideas, and CCRC residents to this day nationwide have few protections. There was a joint task force of residents and providers, but it was disbanded by LeadingAge after a first introductory meeting.

Recently, the Florida Office of Insurance Regulation, which oversees the finances of Florida CCRCs, has proposed legislation to give residents some protection. My hope is that LeadingAge Florida will take those suggestions seriously.

In the case of the residents at Amsterdam Harborside, it’s tempting to blame ill-informed, short-sighted regulators, but the industry, too, does not come with clean hands. Just recently, LeadingAge responded to an article in The Wall Street Journal with a letter to the editor claiming that “many robust resident protections exist.” This sad case should be a wake-up call for providers that it’s time, and past time, for constructive action to make senior living financially safe for residents.