Nassau University Medical Center in East Meadow, N.Y., filed a lawsuit Aug. 13 against Megan Ryan, the president and CEO it terminated in June.
Six things to know:
1. The hospital’s parent company, Nassau Health Care Corp., is seeking at least $10 million in punitive damages for counts including breach of contract and breach of fiduciary duty, according to court documents filed in the Supreme Court of the State of New York.
2. The complaint states Ms. Ryan approved more than $1 million in excess payments to herself and 13 other executives who also resigned, authorized excessive expense reimbursement requests, and directed the destruction of hospital records.
3. Ms. Ryan was appointed interim CEO in January 2024 and named to the permanent role in December. She announced plans to resign July 20 after a state-approved restructuring of the NHCC board. The board placed her on administrative leave June 10, and interim CEO Richard Becker, MD, later terminated her for cause — alleging she authorized excessive payments to herself and the other recently resigned executives. Ms. Ryan has denied the claims.
4. In July, Ms. Ryan filed a notice of claim and said she planned to sue NHCC, alleging wrongful termination.
5. In December, the hospital sued the state of New York, alleging violations of federal Medicaid law deprived it of more than $1 billion in aid. Ms. Ryan’s spokesperson had said the new NHCC board members appointed by Gov. Kathy Hochul have since fired the attorneys in that case and sought an adjournment.
A spokesperson for Ms. Ryan said in an Aug. 14 statement shared with Becker’s that the lawsuit is retaliation for her uncovering what she alleges is a state Medicaid fraud scheme.
“[Board Chair Stuart] Rabinowitz and this unethical board know full well that the payments in question to the staff members who resigned of their own volition was for time they earned in accordance with NHCC policies and precedent,” the spokesperson said.
6. In an Aug. 13 statement from NUMC shared with Becker’s, Dr. Becker said the “coordinated resignations of 14 top administrators and the active destruction of critical hospital management data were deliberate attempts to destabilize this hospital and disrupt care for the patients who rely on us most.”
Mr. Rabinowitz said in the statement that the goal of the complaint is to be “fully transparent about what occurred and to take decisive steps toward a stronger future.”
