The night before New York state took control of the University of Nassau Medical Center, it was reported that a top executive charged nearly $1,500 for a dinner at a Manhattan steakhouse. Seven executives were present at the meal, including former CEO Meg Ryan, raising eyebrows among oversight officials.
This dinner, held on May 29, came just hours before Governor Kathy Hochul appointed new leadership to the hospital, which is struggling with over a billion dollars in debt. Richard Kessel, the chairman of the Nassau County Interim Finance Department, expressed his outrage over the spending, highlighting the hospital’s severe financial issues.
“They celebrated with expensive dinners while the hospital faces serious cash flow problems,” Kessel told Newsday.
The executives dined after attending the Greater New York Hospital Association’s annual meeting, with the bill featuring items like a $175 lobster and a $68 Wagyu beef steak.
According to the hospital’s expense policy, employees generally have caps of $20 for breakfast, $30 for lunch, and $50 for dinner. However, previous leadership appeared to have consistently exceeded these limits. In the months leading up to the state’s intervention, Ryan and her team reportedly spent significantly on trips to various cities, including nearly $8,000 on flights for a healthcare conference in Chicago and a $1,000 hotel bill in Albany.
Following the May 29 dinner, Ryan’s spokesperson claimed that she didn’t actually consume any food and was not responsible for organizing the event. They also mentioned that her expenses were primarily for meetings with government officials and other necessary functions.
Bashir, the spokesperson, argued that the criticism of Ryan was more about political cover for the state’s alleged Medicaid corruption and mismanagement by new appointees under Hochul.
There has been ongoing scrutiny of Ryan’s salary and her expense claims, especially now that new CEO Richard Becker earns even more. Bashir contended that unlike Ryan, who covered many unrefundable costs herself, Becker’s compensation comes from a system that previously allowed excessive spending.
After the dinner, Ryan was terminated “for cause,” and claims surfaced that she had improperly signed off on a large payout. She has since filed lawsuits challenging her dismissal and the allegations against her.
Meanwhile, the spending of the past leadership is currently under audit by the new administration.
