On June 28, 2023 a
Exhibit,Appendix
was filed
involving a dispute between
People Of The State Of New York, By Letitia James, Attorney General Of The State Of New York,
and
Abraham Operations Associates Llc Dba Beth Abraham Center For Rehabilitation And Nursing,
Aharon Lantzitsky,
Amir Abramchik,
Aron Gittleson,
Beth Rozenberg,
Bis Funding Capital Llc,
Centers For Care Llc Dba Centers Health Care,
Cfsc Downstate Llc,
Daryl Hagler,
David Greenberg,
Delaware Operations Associates Llc Dba Buffalo Center For Rehabilitation And Nursing,
Delaware Real Property Associates Llc,
Elliot Kahan,
Hollis Operating Co Llc Dba Holliswood Center For Rehabilitation And Healthcare,
Hollis Real Estate Co Llc,
Jeffrey Sicklick,
Jonathan Hagler,
Kenneth Rozenberg,
Leo Lerner,
Light Property Holdings Ii Associates Llc,
Mordechai Moti Hellman,
Reuven Kaufman,
Schnur Operations Associates Llc Dba Martine Center For Rehabilitation And Nursing,
Skilled Staffing Llc,
Sol Blumenfeld,
for Commercial - Other - Commercial Division
in the District Court of New York County.
Preview
FILED: NEW YORK COUNTY CLERK 06/28/2023 02:27 PM INDEX NO. 451549/2023
NYSCEF DOC. NO. 59 RECEIVED NYSCEF: 06/28/2023
BUDIMIR EXHIBIT 6C
FILED: HOLLISWOOD
7003409N NEW YORKCENTER
COUNTY CLERK 06/28/2023 02:27
FOR REHABILITATION PM INDEX NO. 451549/2023
DCN: 81970945
Report
NYSCEF Period: 01/01/17
DOC. NO. 59 - 12/31/17 RHCF-4 Cost Report 18-May-21,
RECEIVED 01:2606/28/2023
NYSCEF: PM
Notes to Financial Statements
1) Organization:
Hollis Operating Co., LLC (Facility), a limited liability company,
was formed t
2) Summary of Significant Accounting Policies:
The accounting policies that affect the significant elements of the
financial s
Basis of Accounting b
The Facility maintains its books and prepares its financial
statements on the a
Use of Estimates b
The preparation of financial statements in conformity with generally
accepted ac
Cash b
For purposes of the statement of cash flows, the Facility consider
time deposit
Allowance for Doubtful Accounts b
The Facility provides an allowance for doubtful accounts based upon
prior exper
Fixed Assets b
Property and equipment including items acquired under capital leases are
recorde
Residentsb
Residentsbf
2) Summary of Significant Accounting Policies (Continued):
Inventory -
Inventories, which consist primarily of food and supplies,
are stated at the l
Goodwill and Other Intangible Assets b
Intangible assets subject to amortization are shown net of accumulated
amortizat
Accrued Payroll b
Most employees earn credits during the current year for vacations to be
taken in
Patient Care Revenue b
Major portions of the Facilitybi
Medicaid revenue under the current statewide pricing methodology is based
on a b
Patient acuity is based on submission of a minimum data set (MDS)
FILED: assessment
NEW YORKforCOUNTY CLERK 06/28/2023 02:27 PM INDEX NO. 451549/2023
NYSCEF DOC.
NYSNO. 59
implemented RECEIVED
a new managed care Medicaid formula in February 2015, NYSCEF: 06/28/2023
whereby Me
2) Summary of Significant Accounting Policies (Continued):
Advertising b
Advertising costs are expensed as incurred and included in general and
administr
Income Taxes b
Hollis Operating Co., LLC, is treated as a partnership for income tax
purposes,
Uncertainty in Income Taxes b
Management has determined that there are no material uncertain tax
positions th
3) Accounts Receivable:
The Facility grants credit, without collateral, to its patients,
the majority o
Concentration
of Risk
Medicaid Patients $ 4,142,090 63.49%
Medicare Patients 1,215,265 18.63
Private & HMO 1,167,130 17.88
6,524,485 100.00%
Less: Allowance for Doubtful Accounts (111,000)
$ 6,413,485
Management provides for probable uncollectible amounts through a charge to
earni
4) Intangible Assets:
The following is a schedule of the Facilityb
Gross Carrying
Amount Accumulated
Amortization Estimated
Useful Life
Goodwill $16,376,390 0 N/A
5) Loan Receivable:
In 2017, the Facility loaned $7,951,200 to CBO Lending, LLC. This note is
non in
6) Line of Credit and Notes Payable:
a) In 2013, the Facility obtained a revolving credit agreement with
Amalgamated
b) On December 1, 2013, the Facility entered into an unsecured loan
agreement wi
c) Effective May 7, 2013, the Facility obtained an unsecured loan form
Hollis Re
As of December 31, 2017, combined principal payments for the next five
years are
2018 $ 1,708,103
FILED: 2019 260,169
NEW YORK
2020 COUNTY CLERK 06/28/2023 02:27 PM
272,833
INDEX NO. 451549/2023
NYSCEF DOC. NO. 59
2021 286,126 RECEIVED NYSCEF: 06/28/2023
2022 300,080
Thereafter 14,989,938
$ 17,817,249
7) Lease Commitments:
a) The Facility has a noncancelable lease for its building with Hollis
Real Esta
7) Summary of Significant Accounting Policies (Continued):
Future required minimum lease payments are as follows:
2018 $ 4,864,509
2019 4,864,509
2020 4,864,509
2021 4,864,509
2022 4,864,509
Thereafter 97,290,180
$ 121,612,725
b) The Facility also rents additional space on a month-to-month basis.
The total
8) Related Party Transactions:
The Facility shares services at cost with other related parties that
include fis
9) Union:
The majority of the Facility's employees are members of Local 1199 S.E.I.U.
Al
10) Multiemployer Pension Plan:
The facilitybd
Pension
Trust Fund
EIN/PN
PPA Zone Status 2017
FIP/RP Status Pending/
Implemented
Contributions by the Facility
2017
Surcharge Imposed
Expiration Date of CBA
1199 SEIU
13-3604862001
Green
FILED: N/A
NEW YORK COUNTY CLERK 06/28/2023 02:27 PM
$782,387
INDEX NO. 451549/2023
NYSCEF DOC.
No NO. 59 RECEIVED NYSCEF: 06/28/2023
9/30/2018
11) Revenue Assessment:
Effective April 1, 2005, all New York State facilities were
assessed a 6% reven
Concurrently with the tax assessment, the State prospectively calculated an
esti
12) Advanced Training Initiative:
During 2016 the Department of Health awarded funds to certain
nursing home faci
The facility was awarded $342,597 during 2017. The amount received
is reflected
13) Subsequent Events:
The Facility has evaluated for subsequent events through
dateoffinancial, the d
Preview
FILED: NEW YORK COUNTY CLERK 06/28/2023 02:27 PM INDEX NO. 451549/2023 NYSCEF DOC. NO. 59 RECEIVED NYSCEF: 06/28/2023 BUDIMIR EXHIBIT 6C FILED: HOLLISWOOD 7003409N NEW YORKCENTER COUNTY CLERK 06/28/2023 02:27 FOR REHABILITATION PM INDEX NO. 451549/2023 DCN: 81970945 Report NYSCEF Period: 01/01/17 DOC. NO. 59 - 12/31/17 RHCF-4 Cost Report 18-May-21, RECEIVED 01:2606/28/2023 NYSCEF: PM Notes to Financial Statements 1) Organization: Hollis Operating Co., LLC (Facility), a limited liability company, was formed t 2) Summary of Significant Accounting Policies: The accounting policies that affect the significant elements of the financial s Basis of Accounting b The Facility maintains its books and prepares its financial statements on the a Use of Estimates b The preparation of financial statements in conformity with generally accepted ac Cash b For purposes of the statement of cash flows, the Facility consider time deposit Allowance for Doubtful Accounts b The Facility provides an allowance for doubtful accounts based upon prior exper Fixed Assets b Property and equipment including items acquired under capital leases are recorde Residentsb Residentsbf 2) Summary of Significant Accounting Policies (Continued): Inventory - Inventories, which consist primarily of food and supplies, are stated at the l Goodwill and Other Intangible Assets b Intangible assets subject to amortization are shown net of accumulated amortizat Accrued Payroll b Most employees earn credits during the current year for vacations to be taken in Patient Care Revenue b Major portions of the Facilitybi Medicaid revenue under the current statewide pricing methodology is based on a b Patient acuity is based on submission of a minimum data set (MDS) FILED: assessment NEW YORKforCOUNTY CLERK 06/28/2023 02:27 PM INDEX NO. 451549/2023 NYSCEF DOC. NYSNO. 59 implemented RECEIVED a new managed care Medicaid formula in February 2015, NYSCEF: 06/28/2023 whereby Me 2) Summary of Significant Accounting Policies (Continued): Advertising b Advertising costs are expensed as incurred and included in general and administr Income Taxes b Hollis Operating Co., LLC, is treated as a partnership for income tax purposes, Uncertainty in Income Taxes b Management has determined that there are no material uncertain tax positions th 3) Accounts Receivable: The Facility grants credit, without collateral, to its patients, the majority o Concentration of Risk Medicaid Patients $ 4,142,090 63.49% Medicare Patients 1,215,265 18.63 Private & HMO 1,167,130 17.88 6,524,485 100.00% Less: Allowance for Doubtful Accounts (111,000) $ 6,413,485 Management provides for probable uncollectible amounts through a charge to earni 4) Intangible Assets: The following is a schedule of the Facilityb Gross Carrying Amount Accumulated Amortization Estimated Useful Life Goodwill $16,376,390 0 N/A 5) Loan Receivable: In 2017, the Facility loaned $7,951,200 to CBO Lending, LLC. This note is non in 6) Line of Credit and Notes Payable: a) In 2013, the Facility obtained a revolving credit agreement with Amalgamated b) On December 1, 2013, the Facility entered into an unsecured loan agreement wi c) Effective May 7, 2013, the Facility obtained an unsecured loan form Hollis Re As of December 31, 2017, combined principal payments for the next five years are 2018 $ 1,708,103 FILED: 2019 260,169 NEW YORK 2020 COUNTY CLERK 06/28/2023 02:27 PM 272,833 INDEX NO. 451549/2023 NYSCEF DOC. NO. 59 2021 286,126 RECEIVED NYSCEF: 06/28/2023 2022 300,080 Thereafter 14,989,938 $ 17,817,249 7) Lease Commitments: a) The Facility has a noncancelable lease for its building with Hollis Real Esta 7) Summary of Significant Accounting Policies (Continued): Future required minimum lease payments are as follows: 2018 $ 4,864,509 2019 4,864,509 2020 4,864,509 2021 4,864,509 2022 4,864,509 Thereafter 97,290,180 $ 121,612,725 b) The Facility also rents additional space on a month-to-month basis. The total 8) Related Party Transactions: The Facility shares services at cost with other related parties that include fis 9) Union: The majority of the Facility's employees are members of Local 1199 S.E.I.U. Al 10) Multiemployer Pension Plan: The facilitybd Pension Trust Fund EIN/PN PPA Zone Status 2017 FIP/RP Status Pending/ Implemented Contributions by the Facility 2017 Surcharge Imposed Expiration Date of CBA 1199 SEIU 13-3604862001 Green FILED: N/A NEW YORK COUNTY CLERK 06/28/2023 02:27 PM $782,387 INDEX NO. 451549/2023 NYSCEF DOC. No NO. 59 RECEIVED NYSCEF: 06/28/2023 9/30/2018 11) Revenue Assessment: Effective April 1, 2005, all New York State facilities were assessed a 6% reven Concurrently with the tax assessment, the State prospectively calculated an esti 12) Advanced Training Initiative: During 2016 the Department of Health awarded funds to certain nursing home faci The facility was awarded $342,597 during 2017. The amount received is reflected 13) Subsequent Events: The Facility has evaluated for subsequent events through dateoffinancial, the d