Former Nassau University Medical Center CEO Meg Ryan is accused of stealing $1 million through unauthorized exit payments while simultaneously claiming the state is engaged in a corrupt takeover of the struggling hospital.
Key Takeaways
- Interim CEO Dr. Richard Becker claims Meg Ryan authorized approximately $3.5 million in questionable exit payments to herself and 12 other former employees.
- Ryan and her representatives deny wrongdoing, calling the allegations a “political hit-job” orchestrated by Governor Hochul’s administration.
- The controversy comes amid a state takeover of NUMC, with Hochul’s administration gaining control of the hospital’s board despite local Republican opposition.
- A separate federal investigation is examining claims that the state misappropriated over $1 billion from the hospital over two decades.
- Since the state takeover began, approximately 75 employees have resigned, including 10 executives.
Financial Scandal Allegations Emerge
Former CEO Meg Ryan faces serious accusations of financial misconduct at Nassau University Medical Center, a public hospital serving Nassau County’s most vulnerable residents. In a termination letter, interim CEO Dr. Richard Becker stated: “It has come to our attention that you authorized payments of approximately $3.5 million to yourself and 12 former employees,” claiming at least $1 million of those payments were excessive and unauthorized. The board voted on June 10 to place Ryan on administrative leave, appointing Becker as her replacement, with a formal termination meeting scheduled for July 9.
“The allegations are certainly troubling,” said Stuart Rabinowitz, the new board chairman. “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.” Forensic auditors continue investigating the financial transactions, with only about one-third of the audit completed so far, according to officials familiar with the investigation.
Ryan Fires Back, Claims Corruption
Ryan and her representatives have vehemently denied the accusations, portraying them as part of a politically motivated scheme. A representative for Ryan stated: “This is an attempt to distract from the State’s own corruption in the handling of NUMC’s finances.” Ryan’s attorney, Alex Hartzband, maintains that all payments were lawful and properly authorized under hospital policies. Ryan has indicated she plans to sue Becker and NuHealth, the public benefit corporation that operates the medical center.
“[New York State] has made it very clear that they do not want me to be in the CEO role. It was the hardest decision I had to make in my career,” Meg Ryan, former NUMC CEO.
The controversy extends beyond allegations of improper payments. Ryan claims the hospital was on track for financial recovery, projecting an $11 million profit for the year—a stark contrast to the state’s assessment of a dire financial situation. NuHealth reported a staggering $1.4 billion deficit at the end of last year, underscoring the massive financial challenges facing the institution regardless of who’s at the helm.
State Takeover Sparks Mass Exodus
The financial scandal unfolds against the backdrop of a contentious state takeover of the hospital. Governor Hochul’s administration successfully inserted provisions in the state budget allowing appointment of seven NUMC board members, with six directly chosen by the governor. This power shift has triggered a mass exodus of hospital leadership, with approximately 75 employees resigning since the takeover began, including ten executives who departed alongside Ryan.
“Due to years of gross mismanagement, NUMC is in financial peril. I don’t know what parallel universe she’s living in,” Gordon Tepper, spokesperson for Governor Hochul’s administration.
Nassau County Executive Bruce Blakeman and the Republican majority in county government strongly oppose the state intervention, planning legal action to contest what they view as an improper takeover. Adding another layer of complexity, Ryan has been involved in a federal investigation into claims that the state allegedly misappropriated over $1 billion from the hospital over the past two decades—a claim that puts her at odds with the very state officials now accusing her of financial impropriety.
Patients Caught in the Crossfire
While the political and legal battles rage, the state maintains its focus is on improving conditions at the troubled hospital. “The state’s focus at NUMC remains on patient care and the hospital’s fiscal stability. That’s all that matters—everything else is just noise,” said Gordon Tepper, representing the governor’s office. However, critics worry that the leadership vacuum and ongoing power struggle could further destabilize an institution that serves many of the county’s poorest and most vulnerable patients.
The allegations against Ryan highlight the challenges facing public hospitals nationwide, where financial pressures, political influences, and management decisions can directly impact healthcare delivery for thousands. As investigations continue into both Ryan’s exit payments and the broader claims of state misappropriation, NUMC’s future hangs in the balance—along with the healthcare needs of the community it serves.
