LeadingAge NY Seeks to Intervene in CCRC Litigation

LeadingAge New York has filed papers seeking to intervene as amicus curaie (“friend of the court”) in Good Shepherd Village at Endwell, Inc. v. Yezzi, a lawsuit involving a contract for fee-for-service continuing care retirement community (FFSCCRC) services.   

The case involves a couple that obtained residency at Good Shepherd Village at Endwell (GSVE) by paying entrance fees and monthly fees for services received. Three years into their residency, one spouse’s needs increased such that she required placement in the CCRC’s nursing home. At that point, the individual transferred her assets to another family member and obtained Medicaid eligibility.  The plaintiff, GSVE, alleges breach of contract, fraudulent conveyance, civil conspiracy and violations of the Medicaid Act.  Supreme Court found for GSVE, and the Yezzi family appealed.

LeadingAge NY is concerned that if the Supreme Court decision is overturned by the Appellate Division, FFSCCRCs will not be able to rely on resources that residents pledge when admitted to the community. This could seriously endanger the financial viability of the FFSCCRC model and even have implications for other CCRCs. When the Legislature created the FFSCCRC model, it was predicated on residents using their own assets and income to support their care, not on premature reliance on Medicaid to fund these services. The LeadingAge NY Legal Services Committee closely reviewed the case, and given its import the Board of Directors authorized the Association to seek to intervene as amicus.    

The motion seeking permission for LeadingAge NY to intervene in the case was filed on Aug. 27. The Appellate Division-Third Department is hearing oral argument in the case on Sept. 10 in Albany.

Contact: Dan Heim, dheim@leadingageny.org, 518-867-8866