Visual representation of the ongoing legal dispute at Nassau University Medical Center.
Megan Ryan, the ex-CEO of Nassau University Medical Center, has filed a lawsuit against New York State, claiming her termination was politically motivated. Allegations include improper payment approvals totaling $3.5 million. The case raises critical questions about hospital governance and funding mismanagement, as Ryan seeks damages for breach of contract and defamation while disputing the state’s restructuring actions.
Uniondale, New York – Former CEO Megan Ryan has filed a lawsuit against the state of New York following her termination from Nassau University Medical Center (NUMC) amidst a significant leadership transition initiated by Governor Kathy Hochul. Ryan asserts that her dismissal was improper and politically motivated, claiming her actions were consistent with hospital policy and governance norms.
Ryan’s legal action was initiated in state Supreme Court, where she challenges the circumstances surrounding her termination that occurred on July 9. In the weeks leading up to her dismissal, she approved payments totaling $3.5 million to herself and twelve other employees, a decision that has drawn scrutiny from the current interim CEO, Richard Becker. Becker has publicly alleged that at least $1 million of these payments were not warranted, raising questions about Ryan’s decision-making and the financial practices at NUMC.
In her lawsuit, Ryan argues that the payments were justified as compensation for resigning employees during a transitional phase in hospital governance. Furthermore, she alleges that the Nassau Health Care Corporation (NHCC) played a role in a smear campaign against her, particularly after she had previously raised concerns about alleged mismanagement of state funds.
Ryan is seeking damages for breach of contract and defamation, claiming her reputation has suffered due to the leaked details of her termination letter to the press, which she argues contributed to public misunderstanding about her actions. In addition, she has accused the state of inappropriately leveraging the Department of Health and financial regulations to take control of the management operations at NUMC.
This lawsuit is not Ryan’s first legal challenge involving hospital finances. Last year, alongside former chair Matthew Bruderman, she submitted a lawsuit against the state concerning an alleged scheme to misappropriate up to $1 billion in Medicaid funds intended for the facility. Despite these claims, Hochul’s administration has maintained that restructuring the hospital’s board was crucial for improving patient care and ensuring long-term financial viability.
The Nassau County Interim Financial Control Board has dismissed Ryan’s new lawsuit as frivolous and unworthy of judicial consideration, suggesting that it wastes public resources and time. The ongoing leadership shake-up follows a new state budget approved in May, which granted Hochul the power to appoint a majority of board members for NUMC, thereby decreasing the influence of local county officials over hospital governance.
In June, Hochul appointed Stuart Rabinowitz, the former president of Hofstra University, to chair the newly constituted board. These changes came amid Ryan’s decision to step down by the end of July, although her resignation was rejected by Becker, who proceeded with her termination shortly thereafter.
Ryan has claimed that the financial standing of NUMC has deteriorated as a result of state mismanagement, and she expresses a strong desire to clear her name while also pursuing unpaid severance compensation. Her attorney contends that the payments she authorized adhered to both hospital policy and historical practices established by her predecessors.
The situation at NUMC highlights ongoing financial challenges and leadership disputes, particularly regarding its Medicaid funding mechanisms. State and federal officials are now being urged to investigate the hospital’s funding practices in the wake of this civil litigation and continuing management instability. The outcomes of Ryan’s lawsuit and the broader implications for NUMC remain to be seen as the legal process unfolds.
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