NUMC accuses ex-CEO of deleting records, seeks $10M in damages
An academic safety net hospital in New York has filed a lawsuit against its former CEO, alleging she approved over $3.5 million in improper payouts to her and 12 other executives, in addition to other acts of corruption that disrupted operations at the facility.
Nassau University Medical Center (NUMC) announced the lawsuit last week, accusing Megan Ryan of impropriety that includes deleting public records, coordinating mass resignations to cause chaos and billing the hospital for luxury expenses, including bogus business trips.
NUMC also alleges she filed a $1 billion frivolous lawsuit against New York state, wasting hospital resources. That stems from a complaint filed by NUMC, alleging the state unlawfully withheld Medicaid funds.
The facility—which is publicly funded—is seeking $10 million in damages.
“Our goal with this complaint is to be fully transparent about what occurred and to take decisive steps toward a stronger future,” Stuart Rabinowitz, Chair of NUMC’s Board of Directors, said in announcing the court filing against Ryan.
“The taxpayers, patients, and employees who depend on this hospital deserve a clear accounting of how resources were used, and we have a duty to safeguard our mission, protect our ability to deliver care, and ensure NUMC remains a pillar for this community,” he added.
Ryan stepped down from her role in May. At that time, NUMC alleges she ramped up data deletion to cover her acts of corruption, and awarded herself and other executives large termination payouts.
Defense pushes back
According to the New York Post, Ryan’s defense said she is a whistleblower on alleged fraud committed by New York state, which NUMC is attempting to distract from with its litigation.
“This frivolous suit was clearly developed in retaliation for Ms. Ryan’s discovery of the State’s massive Medicaid fraud scheme,” a spokesperson for Ryan told the Post.
The same spokesperson said the departure payments to her and other executives were legitimate payouts for time served. They promised she would be vindicated as the lawsuit moves forward.
The spokesperson added that New York Governor Kathy Hochul is responsible for board changes at NUMC that led to the complaint against Ryan being filed.
The case has not been heard in front of a judge.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.