NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Jan. 5 that Allure Group will pay roughly $2 million in penalties after allegations of improperly handling facility closures.
Allure Group, which owns and manages a group of nursing homes in New York City, bought two non-profit nursing homes— Rivington House - The Nicholas A. Rango Health Care Facility on the Lower East Side, and the CABS Nursing Home in Brooklyn—and then closed them almost immediately, with minimal notice to affected communities.
Under the terms of the settlement, Allure Group must open new health care facilities in Brooklyn and the Lower East Side, will pay $1.25 million for Lower East Side health care non-profits and pay $750,000 in penalties. Allure Group also must make improvements to another facility it manages—the Greater Harlem Nursing Home.
“The processes that led to the closure of Rivington House and CABS never should have happened – this settlement ensures they won’t happen again, while addressing critical healthcare gaps in the impacted communities,” Schneiderman said. “We’re requiring Allure to open new health care facilities in Brooklyn and the Lower East Side, and make major improvements to its Harlem facility, while also providing $1.25 million to non-profits serving vulnerable New Yorkers.”