Retirement Haven Promising Lifelong Care Faces Bankruptcy, Leaving Seniors in Disarray
A decade ago, Barbara Cooper's parents believed they had made their ultimate relocation to Harborside Retirement Community located in Port Washington, New York.
"They offered luxurious brunches every weekend and engaging intellectual events my mother cherished. It was truly idyllic," Cooper remarked.
Having diligently saved, Joyce and Norman Cooper invested $946,000 to gain residence.
"The sum was substantial, but it assured them lifelong health services within the same premises and assured their togetherness," Cooper elaborated.
Harborside provided a comprehensive suite of living options: independent, assisted, nursing, and memory care within one location, characterized as a continuing care retirement community (CCRC). This model commonly involves a steep initial payment and manageable monthly fees, with the promise that a significant portion of the entrance fee is returned to heirs upon residents' passing.
"We anticipated an 80% refund of the entrance fee. This expectation will not be met," Cooper complained.
This alteration arose as Harborside declared bankruptcy in 2023, joining at least 15 other CCRCs in similar financial distress over the past six years.
Post-bankruptcy, a significant number of Harborside's oldest residents had to move. Arlene Kohen, aged 94, was among them. Her daughter, Beverly, secured a new home for her, though the monthly cost was $10,000 higher. Even more distressing, their entrance fee of $710,000 had evaporated, Beverly noted.
Beverly, alongside other beneficiaries, hired legal counsel with hopes of eventually recovering roughly 30% of the entrance fee. Harborside's representatives did not provide comments to CBS News.
Similarly, Joyce and Norman Cooper forfeited their entrance fee and were compelled to relocate. Due to differing health requirements, including Norman's dementia, they were ultimately separated into two facilities after seven decades of marriage.
"They wanted to remain united through life's duration, and the separation was devastating," Barbara Cooper reflected.
Shortly thereafter, Barbara's mother passed away, followed by her father three weeks later.
"We didn't inform him of my mother's passing, yet he somehow sensed it," Cooper shared.
Barbara regards this ordeal as a precautionary tale and suggests that seniors inquire vigilantly about the security of their financial commitments. "If the finances lack protection, the risk becomes significant," she advised.
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