While a lawsuit against its former CEO remains ongoing, Nassau University Medical Center in East Meadow, N.Y., has filed separate lawsuits against seven other former executives over alleged improper termination payments.
Seven things to know:
1. The safety-net hospital’s parent company, Nassau Health Care Corp., said the payouts violated its benefits practices. The disputed funds include what the hospital described as improper or excessive vacation, sick, holiday, compensatory and personal time.
2. The lawsuits, filed Nov. 12 in the Supreme Court of the State of New York, County of Nassau, name the following former leaders as defendants:
- Patrick Degree, former executive vice president and facilities and director of bureau or building services
- Kim Edwards-Johnson, BSN, RN, former deputy chief nursing officer
- Michael Knee, former director of pharmacy
- Vincent Pinkney, former executive vice president of labor relations
- Sasy Salomon, former director of information systems
- Michael Sposato, former deputy executive director
- Simonsarkis Ulubabov, former director of patient care services
“Our clients have engaged in no wrongdoing,” Andrew Garbarino, an attorney representing the defendants, said in a Jan. 28 statement shared with Becker’s. “These complaints that were filed are nothing more than an attempt to gain leverage in another lawsuit, which itself is a manifestation of a partisan political battle.”
3. All seven leaders resigned in May, around the time when then-President and CEO Megan Ryan announced her planned departure. The hospital alleges that Ms. Ryan approved termination payments that exceeded policy caps and that the former leaders have refused to return the portions of their payments the hospital contends were improper.
4. A hospital spokesperson shared with followings statement with Becker’s on Jan. 28:
“NUMC is sending a clear message: we will not stand for taxpayer dollars being abused, and we will use every tool available — legal and otherwise — to hold people accountable. In total, we are seeking to recover close to $1 million in improper overpayments — public funds that should have supported patient care. Our efforts have already led some individuals to repay funds or reach settlements, and the process is ongoing. Long Islanders deserve to know that misuse of public funds will be met with serious consequences.”
5. Nassau University Medical Center separately filed a lawsuit Aug. 13 against Ms. Ryan, alleging she approved more than $1 million in excessive payments to herself and 13 other executives who also resigned. Ms. Ryan has since filed a defamation lawsuit against the hospital.
6. In the seven lawsuits against the former executives, the hospital is seeking repayment of the alleged overpayments, along with interest and other relief. On Jan. 7, the defendants filed a motion to dismiss the claims, consolidate the lawsuits and stay proceedings until the court rules on the case involving Ms. Ryan. The motion is scheduled to be heard Feb. 11.
7. The lawsuits come as Nassau University Medical Center is part of a federal investigation into New York’s handling of Medicaid Disproportionate Share Hospital funding. The House Oversight Committee launched the probe July 2, and on Jan. 16, committee Chairman James Comer, R-Ky., asked CMS to review allegations that the state withheld federal dollars from safety-net hospitals. The investigation follows a now-withdrawn lawsuit NUMC filed in 2024 under Ms. Ryan’s leadership that alleged the state’s actions cost the hospital more than $1 billion. Mr. Comer also pointed to legislation restructuring NUMC’s board and the removal of Ms. Ryan, who was terminated after sharing plans to resign.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
