Liberty, New York — A state Supreme Court judge has temporarily blocked Sullivan County from shutting down the Care Center at Sunset Lake, a 146-bed county-owned nursing home that was slated to close after decades of financial struggles.
State Supreme Court Justice Kevin R. Bryant issued a temporary restraining order late Wednesday that prevents the county from transferring residents, laying off staff, or implementing any part of its closure plan. The order came just days after residents, family members, and employees filed a lawsuit claiming the county violated state open meetings laws and failed to give the public proper notice.
The Legal Challenge
The lawsuit, filed as an Article 78 proceeding, alleges that Sullivan County legislators voted to close the facility during a closed-door executive session on March 26 — but never recorded the vote or held public deliberations. Under New York’s Open Meetings Law, decisions about public facilities typically require transparency and public input.
The petitioners also claim the county “deliberately concealed the substance, timing, and finality of the closure decision” for five months, leaving residents and families scrambling when the closure was finally announced in August.
“The county needs to stop pressuring residents to leave, period,” said Michael Sussman, the civil rights attorney representing the petitioners. Sussman previously won a similar case in 2014 that blocked Orange County from selling its Valley View nursing home.
What Is at Stake
The Care Center at Sunset Lake has served the community for more than 30 years. When the county announced the closure on August 19, officials cited ongoing financial losses and the inability to find a private operator willing to take over.
Since then, the facility’s census has dropped from 93 residents to just 34 as of mid-September. Families say some residents were moved abruptly during lunch periods in an effort to consolidate remaining patients quickly.
“It is traumatic for residents who have become accustomed to a space to suddenly be uprooted,” said Lou Setren, president of the facility’s family council. “There seemed to have been little regard for what is referred to as ‘transfer trauma.'”
Bonnie Lewis, whose sister lived at the facility for five years before being transferred to a different nursing home nearly an hour away, said her sister felt “rushed out the door.”
The Broader Context
County-owned nursing homes have been disappearing across the United States as local governments struggle to balance budgets and find qualified operators. The financial pressures facing operators have made these facilities increasingly difficult to sustain, particularly in rural areas where patient volumes are lower and staffing costs continue to climb.
Sullivan County brought in Infinite Care to manage operations in 2021, but health inspection scores declined significantly under the new management. The county said it could not find another operator willing to assume the financial risk.
What Happens Now
The parties are scheduled to appear in Ulster County Supreme Court on September 21 for a hearing on whether to issue a preliminary injunction that would keep the facility open indefinitely while the case proceeds.
Sullivan County Communications Director Dan Hust said the county is complying with the temporary order but declined to comment further on pending litigation. The New York State Department of Health did not respond to requests for comment.
For now, the remaining residents can stay put. But the long-term fate of the facility — and the county’s legal exposure — remains uncertain.
Discover more from Skilled Care Journal
Subscribe to get the latest posts sent to your email.
