Former Nassau University Medical Center CEO Meg Ryan is accused of unauthorized payouts totaling $3.5 million to herself and select employees amid what critics call Governor Hochul’s hostile takeover of the institution.
Key Takeaways
- Interim CEO Dr. Richard Becker claims Ryan authorized $3.5 million in improper payments, with at least $1 million being unjustified
- Ryan and her representatives dismiss the allegations as a “political hit-job” and plan to file a lawsuit against the hospital administration
- The controversy follows a state takeover of NUMC that granted Governor Hochul authority to appoint 6 of 7 board members
- At least 10 executives and approximately 75 employees have resigned since the state’s intervention
- Ryan is involved in a federal investigation into claims that the state misappropriated over $1 billion from the hospital over two decades
Democratic State Takeover Leads to Executive Exodus
The leadership crisis at Nassau University Medical Center (NUMC) deepened when at least 10 executives, including CEO Meg Ryan, resigned in response to what they perceive as a “hostile takeover” by Democratic Governor Kathy Hochul’s administration. The state budget provision allowed for a dramatic restructuring of the hospital’s governing board, giving Hochul direct appointment power over six of seven board members. This power shift raised immediate concerns about political interference in the hospital’s operations and its future role in serving Nassau County communities.
“[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 NUMC CEO.
Before her departure, Ryan expressed confusion about the hasty transition process, saying, “It’s kind of bizarre, this is supposed to be happening in 48 hours and we have no idea who is on the board,” said Ryan, The executive exodus has expanded beyond the leadership team, with approximately 75 employees resigning since the state takeover began, severely disrupting hospital operations and potentially compromising patient care.
Serious Financial Allegations Surface Against Former CEO
After Ryan’s departure, interim CEO Dr. Richard Becker leveled serious accusations against the former hospital chief. In a termination letter, Becker claimed Ryan had authorized approximately $3.5 million in payments to herself and 12 former employees, with at least $1 million allegedly being excessive and unauthorized. This bombshell allegation led to Ryan being officially terminated “for cause” on June 10, following a brief period of administrative leave. The accusations have dramatically escalated the conflict between state officials and local hospital leadership.
“It has come to our attention that you authorized payments of approximately $3.5 million to yourself and 12 former employees,” stated Dr. Richard Becker, wrote in his letter to Ryan.
The hospital board, now under state control, has scheduled a meeting for July 9 to formally discuss Ryan’s firing. Board chairman Stuart Rabinowitz indicated the allegations are “certainly troubling” and expressed full support for Becker’s actions. Meanwhile, forensic auditors continue investigating the financial transactions, with only one-third of the audit completed so far. The hospital system faces significant financial challenges, having reported a staggering $1.4 billion deficit at the end of last year.
Counter-Allegations and Political Warfare
Ryan and her representatives have vigorously denied all accusations, characterizing them as politically motivated attacks meant to distract from the state’s own mismanagement. Ryan’s attorney, Alex Hartzband, maintains that all payments were lawful and properly authorized under existing hospital policies. More significantly, Ryan’s team has highlighted her involvement in a federal investigation into claims that the state allegedly misappropriated over $1 billion from the hospital over two decades, suggesting the accusations against her are retaliatory.
“This is an attempt to distract from the State’s own corruption in the handling of NUMC’s finances,” said a representative for Ryan.
The political battle lines are clearly drawn, with Nassau County Executive Bruce Blakeman and the Republican majority opposing the state takeover and planning legal action. Ryan’s supporters have raised additional concerns about potential violations of state open meetings laws and improper procurement practices by the new board. Meanwhile, state representatives continue to deflect criticism. “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, a spokesperson for the governor’s office.
Impact on Patient Care and Community Services
While political and legal battles rage, the future of this essential healthcare institution serving Nassau County’s most vulnerable populations hangs in the balance. Some departing executives fear the state plans to convert NUMC into primarily a mental health facility, a claim the governor’s office has denied. Ryan had argued before her departure that the hospital was on a path to financial recovery, projecting an $11 million profit, contrary to the state’s assessment based on what she called outdated financial information.
“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, spokesman for the governor’s office.
As both sides prepare for legal confrontation, with Ryan planning to sue Becker and NuHealth, the Democrat-controlled state apparatus continues consolidating power over the hospital. The massive staff exodus threatens continuity of care, while allegations of financial impropriety undermine public trust. For Nassau County residents dependent on this safety-net hospital, the political power struggle risks compromising access to essential healthcare services while taxpayers may ultimately bear the financial consequences of this governmental overreach.
