Several staff members at Nassau University Medical Center (NUMC) have decided to step down by June due to investigations into whether New York State has been misleading Medicaid with what some are calling a massive financial scheme. This issue involves matching payments for hospitals that supposedly exceed $1 billion. The first whispers of New York potentially scamming Medicaid came up a few months ago in civil court cases and a piece in the New York Post.
Pressures mounted for an investigation as state legislators rallied at the State Capitol to demand answers. A hospital insider, who wished to stay anonymous, shared with Just The News that an in-depth review of the hospital’s finances was conducted last summer. They sought legal advice after spotting discrepancies in the documents submitted by the New York State Department of Health (NYSDOH) to CMS in June 2024.
Allegedly, New York has been cutting NUMC’s Disproportionate Share Hospital (DSH) funding year after year for the past two decades. This means over a billion dollars might have been diverted away from NUMC. Despite working closely with New York State for over a decade, the hospital claims it hasn’t been able to meet with NYSDOH or the governor’s office in the last three years.
In December 2024, The New York Post reported that NUMC was suing New York for $1.06 billion, claiming the state deprived the hospital of crucial funds over 20 years. According to the insider, 80% of NUMC’s patients rely on Medicaid and Medicare. As the county’s only public hospital, NUMC serves about 275,000 patients, many of whom are low-income, uninsured, or on government healthcare.
Governor Kathy Hochul’s office has dismissed these allegations as “false claims.” However, Rep. Eric Burlison, a Republican from Missouri, has called on Attorney General Pam Bondi and FBI Director Kash Patel to look into the matter. Burlison’s letter suggests that New York might have violated federal contracts by not financing its share of Medicaid payments with authorized sources.
The letter continues by noting that evidence indicates funds were moved from NUMC’s accounts to the state, allowing federal funds to be matched and sent to New York. These funds then allegedly had to be sent back, forcing NUMC to cover New York’s share itself. Earlier this month, New York lawmakers passed a $254 billion state budget for Fiscal Year 2026, affecting NUMC’s governance.
The new budget gives Governor Hochul and state Democrats control over the Nassau Health Care Corporation board, which was previously under Nassau County Executive Bruce Blakeman’s jurisdiction. Hochul signed this budget into law on May 9. An unnamed hospital employee told Just The News this shift led to many resignations at the hospital.
Documents reviewed by Just The News show multiple staff resignations effective in June. “The passing of this unprecedented NYS bill moved control from local to state level, and coupled with media attacks, led staff to depart,” the staffer explained. They emphasized that these professionals are experts dedicated to the community and NUMC’s success.
The staffer expressed uncertainty about the hospital’s future, suggesting NUMC might have to close most services, outsource medical procedures to smaller clinics, and significantly reduce staff. Hochul’s office has yet to comment on the situation. As the story unfolds, many are keeping a close watch on how these developments will impact both the hospital and its patients.
