A financial milestone for NuHealth

Not even the work of state lawmakers spoiled a brief celebration at the Nassau University Medical Center last week.
   
Though the state budget battle produced $775 million in health care cuts — including about $2 million for the NUMC — East Meadow-based NuHealth, a public benefit corporation that operates the hospital, celebrated a financial milestone, finishing the year in the black for the first time since it incorporated in 1999.

According to a report from the accounting firm Ernst & Young, NuHealth finished 2009 with a surplus of $804,000. President and CEO Arthur Gianelli made the announcement on June 10 at the NUMC.

NuHealth, formerly the Nassau Health Care Corporation, also runs the A. Holly Patterson Extended Care Facility in Uniondale and several community health clinics.

“Our ongoing sustaining initiatives, which have been implemented over the last decade, have improved our bottom line, providing financial stability and demonstrating that our strategic plan, with investments in modernization and improving the quality of care for all our patients, have produced positive results,” Gianelli said.

NuHealth, which has a $550 million budget and employs about 3,800 people, finished with a deficit of just under $10 million in 2008. Gianelli credited the turnaround to Gary Bie, executive vice president for finance and CFO, and his top staff for incorporating efficiencies on both the operational and revenue sides while dealing with rising pension costs, declining federal and state reimbursements, the uncertain economy and changes resulting from health care reform.
  
Bie explained that savings were generated by a series of financial moves in recent years. “Over the last decade, initiatives have been implemented which have resulted in ongoing financial improvements, mostly in the areas of revenue cycle, supply chain, staffing efficiencies, information technology upgrades, faculty practice plan realignment and program enhancements,” he said.