NUMC CEO canned in hospital shocker in first action after NYS’ controversial ‘takeover’

The recent shakeup at Nassau University Medical Center has left many in the healthcare industry reeling. The hospital’s CEO, Meg Ryan, was abruptly removed from her position in a board meeting following New York state’s takeover of the facility. This move came as part of Governor Kathy Hochul’s budget deal to bring stability to the struggling hospital.

Initially, Ryan had planned to stay on until July 20 to assist with the transition, but the new state-appointed board of directors decided to place her on administrative leave immediately. In her place, Richard Becker, an executive from Northwell Health, was appointed as the interim CEO. Additionally, three outside firms were brought in to help guide the hospital through this transitional period – Manatt, Phelps & Phillips for legal counsel, Deloitte for financial and operational assistance, and Korn Ferry to search for a new permanent CEO.

Despite the sudden change in leadership, Ryan declined to comment on the situation. However, she had previously announced her resignation along with ten other hospital executives. Nassau Executive Bruce Blakeman and the GOP majority in the county legislature opted not to appoint their designated picks to the board in protest of the state’s intervention, instead naming Governor Hochul in a lawsuit to challenge the “illegal takeover.”

The power dynamics at the hospital have shifted significantly, with the state hand-picking seven out of the 11 board members. The Nassau County Interim Finance Authority has also imposed a “control period” to oversee NUMC’s spending, requiring approval for major contracts. This move was triggered by the hospital’s significant operating deficit, which reached $83 million last year.

Despite these financial challenges, NUMC has shown signs of improvement under new leadership. The hospital is projected to turn a profit of $11 million this year, a remarkable feat considering its previous financial struggles. Ryan and other hospital leaders have managed to steer the hospital in the right direction without resorting to job cuts or department closures.

As NUMC navigates this period of transition and uncertainty, the focus remains on restoring stability and ensuring the hospital’s long-term success. The search for a new permanent CEO is underway, and stakeholders are hopeful that the hospital will emerge stronger from this challenging period.