Some Nassau County Democratic legislators and community stakeholders are calling for an overhaul and oversight as Nassau University Medical Center, a 530-bed tertiary care teaching hospital in East Meadow, N.Y., faces significant financial struggles.
Nassau County Legislature Alternate Deputy Minority Leader Siela Bynoe joined with other Democratic legislators and community stakeholders on March 4 to discuss newly-issued state requirements for the hospital's operator, Nassau Health Care Corp., to access crucial funding and to call for the termination of NHCC and NUMC Chair Matthew Bruderman, according to a news release on the county's website.
The state requirements are outlined in a March 1 letter from state Health Commissioner James McDonald, MD. The hospital must immediately conduct a professional and public search for its next CEO and create a detailed plan for reducing operating deficits to receive $83 million in emergency state funding to stay open, Dr. McDonald said in the letter, according to Newsday.
Dr. McDonald also pointed to "a distinct lack of transparency and clear communications" between NHCC and New York State Department of Health officials, according to the publication.
Additionally, the letter calls for the hospital to submit a detailed five-year plan to improve operations and reduce operating losses, according to Nassau County legislators.
Ms. Bynoe said in the legislators' release that the letter shows how the state is seeking leadership accountability that, according to her, Mr. Bruderman is unable to provide as chairman.
"Despite Bruderman's promises of a swift turnaround upon his April 1, 2022 appointment … the fiscal health of this crucial healthcare hub … has only worsened," the release states.
The letter from the state and the legislators' call for overhaul and oversight followed a report on NHCC by an outside consultant, which found the hospital has seen more than $560 million in losses over the last five years, according to Fox 5 NY.
In response to the legislators' claims, the hospital cited its comprehensive reform plan for its financial management and operations, which Mr. Bruderman initiated, though it still requires state funding to operate. The plan is in a presentation that was given to legislators, the state and the local control board and points to more than $100 million in revenue enhancing and cost saving initiatives that are being executed, including the hiring of a highly qualified CFO — Perry Sham, who was hired in December — and new timely monthly financial statements.
The term for Anthony Boutin, MD, as the hospital's president and CEO expired in October 2023. In January, the board voted not to renew his contract and to begin searching for a permanent CEO, along with a chief medical officer and chief nursing officer. Megan Ryan, NHCC's general counsel, was selected as interim president and CEO.
"Tremendous progress has been made over the last year to identify and implement a range of new standards and controls and revenue generating initiatives that will make the hospital more sustainable," a hospital spokesperson said in a statement shared with Becker's.
"That progress is routinely ignored by those who continue to use the hospital as a political issue to garner headlines and deflect responsibility for providing needed gap funding. Current management has made significant reforms that demonstrate the ability for the hospital to thrive with appropriate levels of state funding. Let's be clear, the scaling back of services or closure of the hospital would create a health care crisis in Nassau County. That would be a totally avoidable disaster for our at-risk patient population."
Nassau County Executive Bruce Blakeman on March 4 did not directly address whether he would urge the hospital board to comply with Dr. McDonald's recommendations, according to Newsday. He did, however, criticize state funding reductions and described the call for leadership changes as a "political, cynical and dangerous attempt" by Democratic Gov. Kathy Hochul to "destroy" the hospital, according to the publication.
Mr. Bruderman also rejected demands for new leadership in Dr. McDonald's letter and accused the state of "extortion," and the governor and state and Nassau County Democrats of "defunding" NUMC to close it, according to a separate Newsday report.