NIFA poised for vote on takeover of Nassau University Medical Center finances

Members of Nassau County's financial control board plan to vote next week on a proposal to place Nassau University Medical Center under their control, a move that could include a takeover of the contracting process, board chairman Adam Barsky said.

But in a strongly worded letter, Nassau County Executive Laura Curran urged Barsky Thursday not to overstep by disrupting hospital operations, and emphasized the importance of "employee morale" at the public hospital in East Meadow.

Barsky said in an interview he will propose the takeover of hospital finances at the next meeting of the board of the Nassau Interim Finance Authority, tentatively scheduled for Tuesday.

Barsky has said controls could include imposition of an employee wage freeze, and requirements that the public hospital submit contracts, budgets and union agreements to NIFA for approval.

Barsky said under financial controls, NuHealth “would be required to send us a lot of detailed financial information, which we haven’t been able to receive.” He continued, "Sometimes it's very hard to get information out of them."

NIFA also is seeking to hire a "turnaround specialist" to help improve NUMC's finances.

Financial controls would allow NIFA to “get a better understanding of the financial picture, and when we bring in a consultant … they’d be required to sort of open their books.”

Curran, a Democrat, urged Barsky to move cautiously, arguing that NIFA should not exercise its power to take over the contracting process.

"We believe it is essential to allow the hospital to continue managing its own contracting process without the added steps of NIFA review," Curran wrote. "This will ensure that goods and services continue to flow through the hospital's supply chain without disruption."

Curran also expressed concern about a possible "wage freeze," calling it "at a minimum upsetting" for employees to hear. 

Recently, however, Curran had expressed support for NIFA's involvement in NUMC finances, and questioned whether the hospital had a plan to pay for raises for some 3,000 union employees that recently were approved.

Curran also has moved to increase her influence at NuHealth, the public benefit corporation that runs NUMC. She appointed a new board chairman, Robert Detor, who started work Jan. 17.

That day, Gov. Andrew M. Cuomo appointed three new trustees to the NuHealth board whom Democrats had recommended.

NIFA controls Nassau finances, and the county backs $188 million in hospital debt.

In December, NIFA's outside counsel argued in an opinion that under the NIFA Act, NUMC can become an agency "covered" by the control board. The opinion said NIFA can "approve the hospital’s budget, conduct audits, hire consultants to review the viability of the hospital, make recommendations, review and approve contracts and implement a wage freeze if necessary."

Detor said, “We’re looking forward to working with NIFA — whoever can be helpful to us, we welcome their support.”

Barsky first raised the possibility of getting involved at the hospital after NuHealth trustees in November approved a four-year contract that provided raises totaling 8% for NUMC employees. 

Asked if the labor agreement requires NIFA's approval, Barsky said: "Theoretically, it would have, but that’s already been done. There's not that much you can do with it today."

Curran wrote: "The notion that NIFA 'might freeze wages' is impacting the workforce dramatically … While I am confident that the employees will continue to meet the highest standards of patient care, it is nonetheless at a minimum upsetting for employees at work to hear discussion of a possible wage freeze."

She said the "recent collective bargaining agreement was negotiated in good faith," and urged Barsky to "make a clear statement in support of honoring the current agreement."

Barsky said through a spokesman, “We appreciate the County Executive’s concerns and look forward to working with her and all stakeholders as we move the process forward. It is our intent to look at contracts prospectively and not look to reexamine those already entered into. We intend to hold the hospital to the same standards with regards to contracts that we currently hold the county to."

By Scott Eidler

scott.eidler@newsday.com@ScottEidler

Scott Eidler is a deputy editor for the towns department at Newsday. Scott has worked at Newsday since 2012 and previously covered municipal government and education.