NUMC yet to apply for 'distressed' hospitals aid as deadline nears
The financially troubled Nassau University Medical Center has yet to apply for millions of dollars of state aid that’s been set aside for distressed hospitals — and time is running out to do so.
Lawmakers last year earmarked billions of dollars in aid for “financially distressed hospitals,” through various pots of health care money — with the condition that facilities apply by March 31, 2023, the end of the current fiscal year.
With about three weeks to go, NUMC still hasn’t applied for any help, the state Department of Health confirmed. More than 20 other hospitals around the state have applied, officials said.
Following a meeting with local officials earlier this week and an inquiry by Newsday, NUMC now says it will submit an application in time, spokeswoman Niki Jones said in an email.
The amount of help any hospital might receive depends on a variety of aid formulas.
Given NUMC’s troubles — a July audit found a $136 million operating loss in 2021 — it’s failure so far to apply for the aid has sparked criticism from officials who point out that state government already is making generous payments to help cover NUMC’s insurance costs.
“They need to focus on what programs are out there the state is offering that will help them with their fiscal stress,” Sen. Kevin Thomas (D-Levittown) said. “It’s frustrating to see because it’s a couple of days before the deadline — and especially when other hospitals have applied and have received funds already.”
The state health department, in a statement, said it has “distributed approximately $2.4 billion in support for financially distressed hospitals (including the federal share) in the current fiscal year.”
Last year — for the fourth year — outside auditors warned that NuHealth, the corporation that operates NUMC, was unlikely to survive as a "going concern." The $135.6 million deficit last year amounted to 25.8% of the corporation's $523.6 million budget, the audit said.
The state, through a budget approved by lawmakers last spring, already is helping cover NuHealth’s huge backlog of past-due insurance bills.
On Dec. 31, the state health department wrote to NUMC officials saying NuHealth owed, as of October, $275 million in overdue premiums.
The letter acknowledged the state will pay up to $60 million by March 31 “in order to ensure continued coverage of NuHealth employees.”
But it also noted the state payment is contingent on NuHealth continuing to pay its $2 million per month insurance-premium obligation. Those payments have been occurring, Thomas said.
Outside experts, over the years, have suggested fiscal fixes for NUMC that include dramatic reductions in hospital staff. But unions and many county legislators have opposed going that route.
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