Ex-NUMC CEO Files Lawsuit Against Former Employer
The former head of Nassau University Medical Center has initiated legal action against her previous employer, claiming breach of contract, gender discrimination, and damage to her reputation. She asserts that allies of Governor Kathy Hochul retaliated against her for attempting to recover $1 billion in funding linked to the state’s Medicaid practices.
Meg Ryan, who previously served as the CEO of NUMC, is suing Nassau Healthcare Corporation (NHCC), the umbrella organization for the hospital, along with interim CEO Richard Becker and the board of directors appointed by Hochul in June.
According to the lawsuit, despite her extensive service to NHCC and local residents, Ryan’s employment was abruptly terminated following a political shift in the corporate board, with her dismissal being mischaracterized as being for “cause” in order to justify the termination.
In December 2024, while she was still serving as president of NUMC, Ryan had already filed a lawsuit aimed at reclaiming $1.06 billion that the hospital was denied in federal Medicaid funding for many years.
If her lawsuit succeeds, it could compel the state to return these essential federal funds to hospitals, which primarily serve a population where over 80% of the 275,000 patients are uninsured or low-income, relying on Medicare and Medicaid.
The lawsuit contends that Hochul’s takeover was part of a larger strategy to fill a major budget gap in New York, leading to the termination of lawyers who represented the hospital against the state and the retraction of Medicaid fraud lawsuits.
A budget deal in June with Albany lawmakers imposed significant changes at NUMC, including a national committee that removed local hospital leaders from decision-making roles.
Ryan’s former executives have been accused of running up a $1,500 tab at a Midtown restaurant the night before the state’s takeover, a claim her lawyers have denied in the complaint.
In August, the new NHCC board filed a countersuit against Ryan, claiming she improperly received at least $1 million in exit payments and seeking $10 million in damages.
Ryan’s response countered that the NHCC had awarded a contract worth over $10 million, contravening laws regarding state procurement and transparency.
A representative from Hochul’s office denied any wrongdoing and emphasized that the restructured board is equipped to uphold community hospital priorities.
Interestingly, interim CEO Becker now earns a base salary that is 28% higher than Ryan’s former pay.
Ryan’s attorney, Alex Hertzband, remarked that since June, NHCC leadership has launched numerous unfounded accusations against Ryan, aiming to gain political advantage ahead of the upcoming election.
“This suit is about setting the record straight and reclaiming what is owed,” Hertzband stated, as both Hochul’s office and NHCC representatives have yet to respond to requests for comments.
