Use NUMC funding as a springboard for future

As state lawmakers begin the process of negotiating a $260 billion budget, they must realize $109.6 million in state aid proposed by Gov. Kathy Hochul for Nassau University Medical Center is a lifesaving infusion of cash.

The expected new funding from Albany includes $82.1 million from the state Health Department’s Vital Access Provider Assurance Program, which specifically helps troubled hospitals like NUMC, along with $27.5 million in intergovernmental transfers.

The funds come nearly two years after NUMC, under former Chairman Matthew Bruderman and former interim chief executive Megan Ryan, first asked the state for $125 million. In response, the state Health Department issued a detailed list of requirements, including the need for a robust search for a new chief executive, that Bruderman and Ryan never completed.

The promise of new state money comes as NUMC is suing seven former employees, seeking to claw back about $1 million in allegedly improper termination payments. That’s on top of the hospital’s $10 million lawsuit against Ryan, accusing her of mismanagement, destroying documents and executing the payments.

Now, the state is leading the way for NUMC, after legislation last year resulted in a shake-up of the hospital’s board of directors and the selection of Thomas Stokes as the new chief executive. He and NUMC’s other new leaders must spend the new funds in ways that will allow the hospital to thrive, putting it on a path so that eventually, it won’t need constant bailouts from the state.

There’s a lot to do. The hospital needs to address its capital needs, billing procedures and quality of care, while also exploring potential affiliations with other institutions. NUMC executives have to both control spending and seek new revenue streams.

As a result, the institution likely will need additional state assistance in the short term. The state must be prepared to provide an added financial boost and help as necessary. In return, NUMC must provide regular updates illustrating its progress and the changes it’s making to put itself on firmer footing.

The hospital also must comply with the state’s requirement to develop a comprehensive plan by Dec. 1. A complete analysis will require gathering input from all stakeholders, including patients, staff and community groups, in addition to taking an in-depth look at NUMC’s individual departments, overall finances and broad real estate options, such as possible development of parts of its properties.

To thrive, NUMC must eliminate political patronage, poor governance and messy dealings of the past, including the inappropriate payouts and other misuses of funds. Nassau County Executive Bruce Blakeman and the county legislature’s majority should make their still-outstanding appointments to the NUMC board. And all board members should be independent and apolitical.

Gaining the state’s initial funding support is an important first step — but it’s only the beginning. NUMC’s future depends on a steady hand at its helm, thoughtful planning and ongoing state support to see its turnaround efforts through.