East Meadow, N.Y.-based Nassau University Medical Center is filing a lawsuit against New York, accusing the state of "longstanding violations of federal Medicaid law that deprived the hospital of more than $1 billion in aid."
The safety net hospital alleges that the state "orchestrated a ruse to mislead the federal government" by requiring the hospital to front the state's contractual share of the disproportionate share hospital funds from its own operating account, according to a Nov. 21 NUMC news release.
The hospital said the alleged scheme resulted in a 50% reduction of its aid annually. NUMC also alleges that the state's financial maneuver has been covered up by the state and its officials for more than two decades.
"This is corruption that is both broad and deep within our State's government. This wasn't a clerical oversight, a bookkeeping mistake or incompetence," said Matthew Bruderman, chairman of the Nassau Health Care Corporation, which operates NUMC. "What we've uncovered was nefarious, intentional and the state covered it up for years to starve this hospital and the people it serves of resources."
Attorneys representing the hospital filed a notice that it intends to file a lawsuit with the New York State Court of Claims. It expects to file its formal complaint within the next 60 days.
A spokesperson for the governor's office said that they are "continuing to work with Nassau County on an appropriate solution for the future of NUMC."
"Our concerns are the fiscal health of the hospital and patient care," the spokesperson said. "Everything else is just noise."