Gov. Hochul, Nassau officials hold talks on the future of medical center

The Hochul administration has launched talks with Nassau County about the short- and long-term future of Nassau University Medical Center because its financial hemorrhaging, one participant said, "can’t keep dragging on."

Representatives of Gov. Kathy Hochul met with County Executive Bruce Blakeman, Nassau Interim Finance Authority chairman Richard Kessel and others for about an hour Thursday at Blakeman’s office. Officials described the meeting as cooperative and productive.

But they also stressed the urgency of making a plan for a health center that serves the county’s neediest populations while operating at a deficit and piling up huge debts to the state health insurance plan. NUMC also has faced numerous warnings it could soon run out of cash.

"The state is looking to work with the county to collaboratively come up with solutions for both the short-term and long-term health of the hospital," said Gordon Tepper, a Hochul spokesman. "Given the circumstances at NUMC, this is a significant priority."

Tepper said "all options are on the table." Per state law, this could include installing a temporary operator to take over NUMC.

Kessel said the short-term goal is to "make sure NUMC survives" because it is in "serious trouble."

In June, an audit found the operator of NUMC ran a deficit of $142 million in 2023. Further, Kessel said NUMC owes $350 million in back payments to the New York State Health Insurance Program. Failure to pay could result in termination of coverage for NUMC employees.

"Every month, they have a $9 million premium. They are paying $2 million a month," Kessel said. "We need to move on this thing because every month they’re running out of money. It can’t keep dragging on."

A Blakeman spokesman didn’t immediately return a call to comment.

"It was a good meeting," Kessel said. "The county executive was open to cooperating with us. He didn’t agree to anything, but I think we will come back to him soon with some details."

No next meeting has been slated, but Kessel said it could be in September or early October.

NUMC serves many people who are uninsured, underinsured or Medicaid-dependent, Kessel noted, saying making sure it survives is a "major priority." The medical center also employs thousands.

"This is not going to happen in one fell swoop," Kessel said about addressing the problems. "But we have to start moving some things now."

Nassau Health Care Corp., or NuHealth, is the state public-benefit corporation that runs NUMC in East Meadow, the county’s only public hospital, and the A. Holly Patterson Extended Care Facility in Uniondale, Nassau’s sole public nursing home.

An audit released in June found NuHealth logged a $142 million deficit in 2023, despite implementing new revenue-generating initiatives and receiving an influx of federal funding.

That deficit was $22 million less than its 2022 operating deficit, yet auditors still found there is "substantial doubt" the system could continue as a "going concern."

The audit said NuHealth generated $537 million in net patient revenue in 2023, a $76 million increase, through several initiatives, including hiking, for the first time in a decade, the cost of hospital procedures. But NuHealth also had higher expenses in 2023 to cover wage increases and overtime.

In June, NuHealth CEO Megan Ryan told Newsday: "This is a process that is addressing long-standing chronic challenges, but it has realized significant success already, despite cuts in state aid. Our fiscal reform plan has already reduced the projected deficit by more than $100 million through a variety of resource management reforms under the control of the corporation, tripled our cash on hand and increased our collections to a degree that should reassure the public that NUMC can survive and thrive."

By Yancey Roy

yancey.roy@newsday.com@yanceyroy