Gov. Hochul weighs changing structure of NUMC board to give her control, sources say

ALBANY — Gov. Kathy Hochul is proposing to change the governance structure of the Nassau University Medical Center to give her office control of the board, according to sources familiar with state budget negotiations.

Hochul’s team has floated a proposal — which could be included as part of a budget deal — that would overhaul oversight of the deeply in debt, safety-net hospital. It would change the governance structure to effectively give the governor’s office control of a majority of board appointments, according to sources familiar with the proposal.

Hochul, the State Senate and Assembly have been holding budget talks with the goal of finalizing a deal soon. The budget was supposed to be adopted by April 1, the start of New York’s fiscal year.

NUMC Board Chairman Matthew Bruderman, a Republican appointee, said in a statement: "If this is true, it is more proof that NUMC’s takeover isn't about saving the hospital, our employees or our patients, but rather a Democratic Party power play."

He called the notion of folding NUMC legislation in the budget "dubious."

It’s not unusual for policy issues to get folded into the budget. For example, Hochul also is trying to get changes to trial law procedure and a ban on cellphones in school included into the budget.

Now add NUMC to the list.

Nassau Health Care Corp., the entity that runs the hospital, is more than $500 million in debt and asked for a state bailout a year ago. Just last fall, Hochul’s administration began talks with Nassau County Executive Bruce Blakeman and the Nassau Interim Finance Authority, which monitors county and NHCC finances, on a possible long-term strategy to put the hospital in better financial position.

But Blakeman and NUMC recently changed direction, launching an ad campaign blaming Hochul for the hospital’s problems and filing a lawsuit claiming state government has shortchanged NUMC in state aid by $1 billion.

NIFA has called the lawsuit a "baseless political stunt," meant to distract from the medical center’s long-running and worsening financial problems.

The state has included NUMC among New York’s "distressed hospitals" list, making it eligible for special funding annually. It received specially designated aid because NUMC treats a significant number of low-income, uninsured and Medicaid-covered patients. But Nassau officials allege they haven’t received all they’re due.

With the rhetoric escalating, the Hochul administration has been considering a board restructuring and recently raised the idea with legislative leaders in budget talks, one source said.

 A key official said the idea could have support in the State Legislature.

 "I think it does have momentum," said the official who is familiar with the discussions but wanted to remain anonymous because of the subject's sensitivity at this point. "The problems are long-running and they have to do something over there."

In contrast, a state legislator who has been supporting NUMC's bid for more funding said he opposed a governance takeover.

 "I don't think the state should have control of the board," Assemb. Edward Ra (R-Garden City) said at the State Capitol Tuesday. "I think it needs to remain in local control. It's our safety-net hospital. People rely on it. I think the state needs to work with the hospital's administration rather than take over the hospital's administration."

By Yancey Roy

yancey.roy@newsday.com@yanceyroy