Former Nassau University Medical Center CEO Meg Ryan allegedly stole $1 million in unauthorized severance payments while a federal investigation into a $1 billion scheme to defund the hospital unfolds against New York State.
Key Takeaways
- Former NUMC CEO Meg Ryan is accused of authorizing $3.5 million in improper severance payments to herself and 12 other employees, with at least $1 million allegedly unearned.
- Ryan claims the allegations are a “political hit-job” following Governor Hochul’s controversial state takeover of the hospital, which gave the governor power to appoint 6 of 7 board members.
- The ousted CEO is pursuing legal action against interim CEO Dr. Richard Becker and NuHealth while simultaneously involved in a federal investigation into claims the state misappropriated over $1 billion from the hospital.
- Since the state takeover, approximately 75 employees have resigned from NUMC, including key hospital leadership positions.
- Nassau County Executive Bruce Blakeman and GOP majority officials oppose the state takeover and plan to sue, highlighting concerns about open meetings law violations and improper procurement practices.
Hospital Leadership Controversy Erupts
The battle over Nassau University Medical Center has intensified as interim CEO Dr. Richard Becker accused former CEO Meg Ryan of approving unauthorized severance payments totaling $3.5 million, including payments to herself and a dozen former employees. According to Becker, forensic auditors have determined that at least $1 million of these payments were excessive and improperly authorized. The explosive allegations have emerged following Ryan’s removal on June 10, when she was placed on administrative leave and subsequently terminated “for cause” on June 22.
“It has come to our attention that you authorized payments of approximately $3.5 million to yourself and 12 former employees,” Dr. Richard Becker, interim CEO of NUMC.
The hospital’s board has scheduled a meeting on July 9 to formally discuss Ryan’s firing, though current board chair Stuart Rabinowitz has already expressed that the allegations are “certainly troubling.” The new leadership, installed following a controversial state takeover of the hospital, has emphasized that forensic auditors are continuing their investigation, with only one-third of the audit completed. This suggests the total amount of allegedly improper payments could increase as the investigation proceeds.
State Takeover and Mass Exodus
The controversy surrounding Ryan’s termination is set against the backdrop of what many describe as a “hostile takeover” by Governor Kathy Hochul’s administration. A provision in the state budget allowed for the appointment of seven board members to NUMC, with six directly chosen by the governor, dramatically shifting the power balance at the financially troubled hospital. This move prompted at least 10 executives, including Ryan, to resign in protest before her eventual termination.
“[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,” said Meg Ryan, former CEO of NUMC.
The state’s intervention has triggered a mass exodus of hospital staff, with approximately 75 employees resigning since the takeover, including key leadership positions. Many departing executives expressed concern that the new board would diminish their influence and potentially convert the hospital into a mental health facility, although the governor’s office has denied these claims. The upheaval has created significant uncertainty about the future direction of this critical healthcare institution serving vulnerable populations.
Competing Financial Narratives
The financial status of NUMC remains a point of fierce contention between Ryan and state officials. Ryan has consistently maintained that the hospital was on a path to financial recovery, projecting an $11 million profit, while state representatives paint a bleaker picture. NuHealth, the public benefit corporation that runs NUMC, reported a staggering $1.4 billion deficit at the end of last year, underscoring the hospital’s precarious financial position.
“Due to years of gross mismanagement, NUMC is in financial peril. I don’t know what parallel universe she’s living in,” said Gordon Tepper, spokesperson for the governor’s office.
Adding another layer of complexity to this financial dispute is Ryan’s involvement in a federal investigation into claims that the state allegedly misappropriated over $1 billion from the hospital over two decades. This investigation directly contradicts the state’s narrative of financial mismanagement by hospital leadership. Ryan’s representatives suggest the recent allegations against her are designed to distract from the state’s own handling of NUMC’s finances, claiming, “This is an attempt to distract from the State’s own corruption in the handling of NUMC’s finances.”
Legal Battles on Multiple Fronts
Ryan is not accepting these allegations quietly. Through her attorney, Alex Hartz band, she maintains that all payments were lawful and authorized under hospital policies. She plans to sue Becker and NuHealth to clear her name, characterizing the accusations as politically motivated. Meanwhile, Nassau County Executive Bruce Blakeman and the GOP majority in county government have voiced opposition to the state takeover and are planning their own legal challenge.
“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, spokesperson for the governor’s office.
Critics of the new board have raised additional concerns about potential violations of state open meetings laws and improper procurement practices. These allegations further complicate the already contentious situation at NUMC and raise questions about governance transparency. As these legal battles unfold, the hospital’s ability to fulfill its mission of serving the community’s healthcare needs hangs in the balance, with both sides claiming to prioritize patient care while engaging in increasingly bitter political and legal confrontations.
