New York hospital ordered to submit financial stability plan

Alia Paavola -

A New York control board ordered the leaders of Nassau University Medical Center in East Meadow, N.Y., to file plans to address its financial woes, Newsday reported.

The Nassau Interim Finance Authority, which controls county and hospital finances, ordered the leaders to submit a proposal July 19. NuHealth, the entity that oversees Nassau University Medical Center, has 90 days to file a plan. 

In its move to require the plan, the finance authority said NuHealth lacks "a viable financial plan" and has an "apparent misunderstanding of its very serious financial problems."

In early July, outside auditors warned that Nassau University Medical Center may not survive after a budget deficit swelled by 60 percent to $102.3 million in one year. It also was the third year in a row that the annual audit of finances raised substantial doubt that the hospital could survive in its current state.

NuHealth chair Edward Farbenblum told Newsday that it is working to finalize a strategic plan and that the company recognizes the need for urgency and that the "hospital is in dire straits."

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