Nassau University Medical Center Sues Former CEO for $10 Million
The Nassau University Medical Center has initiated a lawsuit against its former CEO, Meg Ryan, seeking $10 million in damages. The hospital cites various allegations of misconduct, including personal enrichment, policy breaches, and significant waste of public funds.
Ryan, who lost her position in June following a leadership change, is accused of misappropriating at least $1 million through inappropriate exit payments. This occurred after her appointment by Governor Kathy Hochul amid a contentious state takeover that month.
The lawsuit alleges that Ryan used her authority to benefit herself and other executives. Charges include submitting extravagant expenses, requesting reimbursements for non-existent trips, destroying hospital records, orchestrating mass departures of senior staff, and engaging in unproductive litigation against New York State.
“This complaint aims to shed light on the circumstances surrounding these issues and to pave the way for a stronger future,” stated Stuart Rabinowitz, chair of NUMC’s board, in a press announcement regarding the lawsuit.
“Taxpayers, patients, and employees depending on this hospital deserve an honest accounting of resource usage. We must safeguard our mission, maintain our capability to deliver care, and ensure NUMC remains a cornerstone of the community,” he remarked.
However, representatives for Ryan suggest that the lawsuit diverts attention from state fraud allegations she claims to have exposed as a whistleblower.
“This baseless lawsuit appears retaliatory, aimed at punishing Ryan for uncovering a significant Medicaid fraud scheme,” a spokesperson for Ryan told the press.
Ryan’s team further asserted that the lawsuit serves as a diversion from the state’s alleged misconduct, describing it as a smokescreen intended to distract from actions taken by Hochul to halt lawsuits against the state. The spokesperson criticized the new leadership, claiming it was political maneuvering to cover up the situation.
Additionally, they accused Rabinowitz and the board of unethical behavior, asserting that there were misrepresentations regarding payments to staff. These payments, they contend, were consistent with the policies and precedents of the Nassau Health Care Corporation.
“If those in charge who seem to be masking the state’s massive fraud want a confrontation, they will have it—we possess the evidence and witnesses to support Ryan’s case,” the spokesperson declared.
On the other hand, the state criticized Ryan’s leadership, characterizing it as a notable example of poor governance.
“The sheer extent of waste, abuse, and mismanagement during Ryan’s tenure is an embarrassment to taxpayers and a disservice to the hospital’s mission,” said Gordon Tepper, a spokesperson for Governor Hochul. He highlighted recent reports about an extravagant dinner charged to the hospital shortly before the previous board’s dismissal as further evidence of the need for accountability and restructuring within the agency.
