Former NUMC CEO Meg Ryan Files Lawsuit Against Nassau Health Care Corporation

In a significant legal development, Meg Ryan, the former CEO of Nassau University Medical Center (NUMC), has initiated a lawsuit against her previous employer, the Nassau Health Care Corporation (NHCC). The suit, filed in New York State Supreme Court, alleges breach of contract, gender discrimination, and defamation, while also claiming retaliation linked to her efforts to recover over $1 billion in Medicaid funding from the state.

Background of the Dispute

Ryan’s tenure at NUMC was marked by her commitment to serving a vulnerable patient population, with approximately 80% of the hospital’s 275,000 patients being uninsured or low-income individuals reliant on programs like Medicare and Medicaid. Under her leadership, NUMC filed a lawsuit in December 2024 against New York State, seeking to reclaim $1.06 billion in federal Medicaid funding that had been denied for decades. This funding is crucial for the hospital, the only public facility in Nassau County, to continue providing essential healthcare services.

However, the political landscape shifted dramatically when Governor Kathy Hochul‘s administration intervened. Following a budget deal in June, a state-run board was imposed on NUMC, effectively removing local officials from the hospital’s governance. This takeover coincided with the withdrawal of the Medicaid fraud lawsuit, raising questions about the motivations behind the state’s actions.

Allegations of Retaliation and Defamation

Ryan’s lawsuit claims that her termination was politically motivated, orchestrated by Hochul’s allies to undermine her efforts to secure the much-needed funding. The complaint states, “Despite her years of service to NHCC and Nassau County residents, NHCC abruptly terminated her employment following a political takeover of the Corporation’s Board of Directors by the State of New York.” The suit further alleges that the NHCC leadership engaged in a “shameless, relentless media campaign” to tarnish Ryan’s reputation, diverting attention from governmental mismanagement that she had helped expose.

The interim CEO of NHCC, Richard Becker, along with board chairman Stuart Rabinowitz and Nassau County Interim Finance Authority Chairman Richard Kessel, are named in the lawsuit. They are accused of leaking false information to the media, including claims that Ryan and other executives incurred a $1,500 bill at a Midtown restaurant the night before the state takeover. Ryan’s legal team has categorically denied these allegations, asserting that they are part of a broader strategy to discredit her.

Financial Implications and Legal Counterclaims

In a counter-move, the newly appointed NHCC board filed a lawsuit against Ryan in August, seeking $10 million in damages. They accused her of misappropriating at least $1 million through improper exit payouts. In response, Ryan’s complaint highlights that the NHCC board itself awarded over $10 million in no-bid contracts, allegedly violating state procurement and transparency laws.

The financial stakes are high, not only for Ryan but also for the hospital and the community it serves. The loss of federal funding could severely impact NUMC’s ability to provide care to its patient base, which is already facing significant barriers to access.

Gender Discrimination Claims

Ryan’s lawsuit also raises concerns about gender discrimination within the NHCC leadership. She points out that Becker’s base salary is 28% higher than hers, a disparity that she argues can only be explained by gender bias. This claim adds another layer to the ongoing conversation about gender equity in leadership roles, particularly in the healthcare sector, where women often face systemic challenges.

Political Context and Implications

The political backdrop of this case is crucial for understanding its implications. Hochul’s administration has faced scrutiny over its handling of healthcare funding and governance, particularly in light of the ongoing budgetary challenges facing New York State. The imposition of a state-run board at NUMC has raised alarms about the erosion of local control and accountability in healthcare management.

Ryan’s attorney, Alex Hartzband, emphasized the political motivations behind the lawsuit, stating, “Since June, members of NHCC leadership have leveled countless false accusations against Ms. Ryan to score cheap political points ahead of the November election.” This statement underscores the intersection of healthcare, politics, and gender issues, making the case not just a legal battle but a focal point for broader societal discussions.

Conclusion

As the lawsuit unfolds, it will likely draw attention not only to the specific allegations against NHCC and its leadership but also to the larger issues of healthcare funding, gender discrimination, and political accountability in New York. The outcome could have far-reaching implications for NUMC and the community it serves, as well as for the ongoing discourse surrounding women’s roles in leadership positions. With both sides preparing for a protracted legal battle, the case serves as a reminder of the complexities at the intersection of healthcare, politics, and gender equity.