One Year In, NUMC Financial Reform Plan Shows Substantial Progress
Despite Albany’s Cuts and Ongoing Medicaid Fraud Scheme, Cash Balances and Revenue are Up While Operating Expenses are Down
(EAST MEADOW, NY) – Long Island’s largest public safety-net hospital continues to show improved fiscal health as it continues to implement significant financial reforms introduced in late 2023, despite efforts by New York State government to deprive the hospital of critical funding.
In November 2023, Nassau Health Care Corporation Board of Directors Chairman Matthew J. Bruderman unveiled an aggressive NHCC Financial Sustainability Plan. Bruderman’s plan called for the hiring of a Chief Financial Officer, the implementation of new timely monthly financial statements, the renegotiation of many of the hospital’s contracts, the creation of a financial dashboard with daily cash balances available, and an updated charge master and billing software. All of those reforms and additional upgrades to services have resulted in a substantial turnaround for the hospital, without a single grant from the State.
According to the latest financial reports, NUMC’s revenue for the month of November 2024 was up $6.2 million from November of 2023. Operating expenses for the month of November 2024 were down $1.7 million compared to last year. After several third parties incorrectly claimed the hospital would run out of cash within days, the reform program has helped increase NUMC’s cash on hand from $28 million in December of 2023 to more than $77 million in December 2024 – a $49 million increase. The reform program also produced the hospital’s first on-time budget ever. The fiscal improvements slashed the projected budget deficit for the hospital by more than 56 percent in just 12 months.
NHCC Board Chairman Matthew J. Bruderman said, “The course of treatment we laid out last year for the long-term fiscal health of the hospital is working. While NIFA Chairman Richard Kessel and Albany politicians continue to mislead the public about NUMC’s finances and deprive this institution of aid, we are proving that after years of neglect and incompetent leadership, we are saving this hospital. We’ve proven conclusively that if Albany would only comply with federal Medicaid law and restore even a portion of our aid, NUMC will be profitable,” Bruderman added. “While NUMC was barely making payroll when I arrived, the hospital is now ending 2024 with $80 million in the bank. Unfortunately, despite our progress, we’ve seen little interest on the part of State to choose patients over politics.”
In addition to the improved financial position, NUMC has also instituted the reforms without the dramatic layoffs recommended by NIFA or executed by previous leadership. NUMC has also expanded its clinical services, received the Gold Seal of Approval from the Joint Commission and increased its safety rating for the first time in six years. “Anyone who argues with this record is being deliberately disingenuous and driving an agenda that endangers our patients, staff and the future of this critical resource for Nassau,” stated Bruderman.
NHCC President, CEO, and Chief Legal Officer Megan Ryan said, “This is the most significant financial improvement NUMC has shown in years. NHCC has made tremendous progress to enhance NUMC’s financial health and ensure the hospital moves toward long-term fiscal sustainability. Our staff have played an invaluable role in making this reform program a tremendous success. It is beyond comprehension that while we continue to improve, the State continues to ignore their legal obligation to provide critical funding for our at-risk patient population. The reform program is proving that with the support to which we are legally entitled, NUMC will not only survive but be profitable and a model for other safety-net institutions.”
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