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Board sets date to discuss allegedly improper payments to NUMC CEO, others

Published 6 hours ago3 minute read

The board overseeing Nassau University Medical Center has slated a July 9 meeting to discuss issues including the firing of former CEO Megan Ryan for allegedly doling out unauthorized payments to herself and others, officials said Friday.

The allegations are "certainly troubling," said Stuart Rabinowitz, chairman of the Nassau Health Care Corp., or NuHealth, which governs NUMC.

Ryan had been NUMC’s top executive when the NuHealth board was controlled by Nassau County Executive Bruce Blakeman and county Republicans. But the ground began to shift in May when the State Legislature and Gov. Kathy Hochul, citing years of rapidly accumulating debt and other issues, passed a new law giving the governor and local Democrats a majority of NuHealth board members.

Ryan announced she’d leave in July; the new board instead put her on administrative leave on June 10, replacing her with interim CEO Dr. Richard Becker.

On Thursday, Newsday reported that Becker sent a letter to Ryan saying she was terminated immediately "for cause" because an ongoing audit showed she authorized payments to herself and 12 others of "at least $1 million" in "excess of amounts that were due to you and other employees."

On Friday, Rabinowitz said: "The board is fully supportive of our interim CEO and is well aware of what happened and we stand by the letter he wrote and what is contained in it."

He added: "We’ve been advised that certain payments were unauthorized and that is certainly troubling and that is why we took the action we took."

Ryan’s attorney didn’t comment Friday. However, on Thursday, Alex Hartzband said the termination letter was an "effort to humiliate Ms. Ryan."

"This is yet another politically motivated hit against Ms. Ryan as NHCC leadership attempts to distract from the State’s own corruption in the handling of NUMC’s finances," Hartzband wrote in an email. "Ms. Ryan’s integrity and record of accomplishment to improve health care for Nassau County residents are beyond reproach."

Becker’s letter said if Ryan could supply a "valid business purpose" for the expenses by Friday, the board might reconsider her termination. Rabinowitz said he wasn’t sure Ryan would respond but the ongoing audit would continue.

Forensic auditors were "maybe a third of the way done," Rabinowitz said, and the information about payments Ryan authorized was "just the first report we’ve gotten back." 

Newsday reported last month that NuHealth reported a deficit of $1.4 billion at the end of last year. NUMC is the county’s safety net hospital, which means it accepts many patients with insufficient or no health insurance.

Blakeman, Ryan and NuHealth have claimed the state shortchanged NUMC $1 billion in aid over the years and, earlier this year, filed a lawsuit, which critics called meritless. Hochul and state legislators approved a new board structure for NuHealth in May, ending Blakeman’s control of the panel.

Seven new board members — appointed by Hochul and Democrats — were installed earlier this month. Blakeman announced he wouldn’t appoint members to the two spots he controls, calling the new board a "charade."

Yancey Roy

On this episode of "Sarra Sounds Off," Newsday's Gregg Sarra, Ben Dickson and Michael Sicoli recap the state championships including baseball and lacrosse.  Credit: Newsday/John Paraskevas; Varsity Media, Luke Griffin

On this episode of "Sarra Sounds Off," Newsday's Gregg Sarra, Ben Dickson and Michael Sicoli recap the state championships including baseball and lacrosse.

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