NUMC is on the road to financial recovery

The treatment is working. For the past year, the leadership of Long Island’s largest safety-net hospital has buckled down to demonstrate that this beacon of hope for so many residents can survive, and thrive.

That may not be the message of some politicians, Albany bureaucrats and media often content to push misinformation, but the facts tell a story of resilience. The Nassau Health Care Corporation and Nassau University Medical Center are demonstrating the power of strategic reform and unwavering dedication in the face of intense financial strain.

The comprehensive reforms implemented over the past year have been nothing short of transformative. We overhauled NUMC’s ancient billing and collections processes, updated financial standards and practices, strengthened quality controls, and upgraded our information technology systems. All were longstanding areas of deficiency in hospital management that needed reform.

Today NUMC boasts on-time budgets, comprehensive audits, greater transparency and daily financial reporting that have enabled us to identify more than $100 million in savings in the past year.

The recent audit by Grant Thornton confirms that our reforms are working. NHCC is on a path to long-term fiscal sustainability. The numbers speak for themselves. Despite what has been reported by Newsday, our cash on hand increased from $23 million to $67 million in just the first six months of 2024.

Net patient service revenue saw a significant boost, rising by $76 million to $536 million in 2023. We also managed to reduce our operating losses by $30 million, and reduced overtime costs by $4 million. These aren’t just dollar figures; they represent our commitment to responsible stewardship and our dedication to providing quality health care.

For 2023, NUMC was projected to have a $179 million budget gap. We’ve closed that projected deficit by more than half.

This remarkable progress underscores the efficacy of our Financial Sustainability Reform Plan, initiated last year, and highlights the potential for more success if health care is prioritized over political gamesmanship.

This dramatic reform program has been a team effort led on a daily basis by our interim president and CEO, Megan Ryan. Her leadership, combined with the tireless efforts of our new chief financial officer and the entire NHCC management team, has been pivotal in demonstrating that despite chronic challenges, the hospital can thrive, giving peace of mind to future generations.

It is important, however, to acknowledge that our journey is far from over. While the audit results are encouraging and key metrics are positive, there is an underlying and inescapable truth that seems inconvenient for some Albany leaders. As a safety-net hospital, NUMC cannot continue to serve its more than 275,000 patients per year without state aid and higher Medicaid reimbursement rates. We serve a diverse community, including Nassau’s most at-risk patients, many of whom cannot afford to pay for care.

Even though the Legislature just increased the state budget by $8 billion, there continues to be reticence to commit to ensuring that our hospital survives. Our progress shows clearly that our stated goal for NUMC of relying on less aid over time is achievable. But we still need help to provide care for those who cannot afford to pay.

Claims that the state doesn’t have the money are nonsense. Claims that management isn’t making reforms are patently false. Cutting our staff by 90 percent, which was recommended by the Nassau Interim Finance Authority in 2020, would be an insult to the people who rely on us for care. Caring for our most vulnerable should be government’s top priority, not political jockeying for control over vital institutions.

Nassau needs NUMC. No other hospital can serve our patients. There simply isn’t enough capacity. Other local hospitals are disincentivized from treating Medicare and Medicaid patients and won’t treat the uninsured. While we wait for Albany to recognize that, our team will continue to protect this vital institution. We are determined to address the challenges we face head-on, with the same commitment and resilience that have brought us this far.

Despite what you’ve heard, the future of NHCC is indeed promising. The hospital is treating what has ailed it for decades. This success should be a rallying cry for bipartisan support now for a healthier tomorrow for all we serve.

Matthew J. Bruderman is chairman of the board of directors of Nassau Health Care Corporation, which operates Nassau University Medical Center and the A. Holly Patterson Extended Care Facility.