Nassau University Medical Center Uncovers Gross Violations of Federal Medicaid Law, Begins Process of Commencing Litigation Against New York State

Filings Expose How New York State Orchestrated a Ruse to Fool the Federal Government to Starve Safety Net Hospital of $1 Billion in Aid

(EAST MEADOW, NY) - In what could be the largest financial shell game uncovered in State history, Nassau University Medical Center (NUMC) announced today the filing of an official Notice of Intention to File Claim with the New York State Court of Claims, marking the first step toward litigation against the State of New York for alleged longstanding violations of federal Medicaid law that deprived the hospital of more than $1 billion in aid.

In its claim, Long Island's only public safety net hospital asserts that New York State orchestrated a ruse to mislead the federal government by requiring NUMC to front the State's contractual share of the Disproportionate Share Hospital funds from its own operating account. The results of a deliberate and nefarious effort to violate Federal law resulted in an annual reduction in the hospital's aid by 50 percent.

NUMC alleges in its filing that this illegal financial maneuver has been covered up by the State and its officials for more than two decades.

At a press conference today in front of hundreds of doctors, nurses and hospital staff, Matthew Bruderman, Chairman of the Nassau Health Care Corporation (NHCC) Board of Directors stated, "this is corruption that is both broad and deep within our State's government. This wasn't a clerical oversight, a bookkeeping mistake or incompetence. What we've uncovered was nefarious, intentional and the State covered it up for years to starve this hospital and the people it serves of resources." Bruderman also called out the county's State-appointed financial oversight board, NIFA, accusing them and their consultants of being complicit or incompetent for failure to uncover this gross financial impropriety.

Steve Cohen, Partner at Pollock and Cohen Co-Counsel with Susman Godfrey LLP stated, "What New York State did is not just deliberate financial deception, it risked the future of a hospital that is dedicated to our area's most at-risk people. It should shock every taxpayer." NUMC serves more than 275,000 patients each year with more than 80 percent of which are Medicare, Medicaid or cannot pay for services.

A copy of the Notice of Intention can be found HERE. NUMC anticipates filing formal complaints against the State over the next 60 days.

"As we prepare to initiate litigation, the facts will reveal that the State of New York deliberately violated federal law, depriving this hospital of the resources it needs to be financially sustainable," said Megan C. Ryan, Esq., Interim President and CEO, and General Counsel for NHCC. "NUMC is a lifeline for Nassau County's most vulnerable residents. The State's financial misconduct has hurt this institution and the people it serves. Today marks the beginning of holding the State accountable and ensuring this community gets the resources it deserves."

Bruderman and Ryan also detailed during the announcement the results of the financial reforms implemented to help save NUMC over the last year. "While Albany and the press malign this hospital and starve it of resources, we've proven the hospital can be profitable if the State of New York followed the law." Under NUMC's present leadership, the hospital has more than tripled its cash on hand, improved quality ratings which had not occurred in prior administrations, and increased collections and modernized its systems over the last year.

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