Fiscal Trauma at NUMC

NASSAU COUNTY CIVIC ASSOCIATION, INC.

"The government is us, we are the government, you and I." Teddy Roosevelt

January 25, 2004

Nassau County has a hard pill to swallow

In December of 2003 there were 260 health care workers laid off from Nassau University Medical Center in East Meadow. This followed a layoff in January of 2002 when more than 200 orderlies, lab technicians and messengers were given their walking papers. Officials at NUMC also foresee layoffs coming this year which could affect as many as 600 of the 4000 people in the health care workforce. Workers such as surgical technicians, occupational therapists, social workers, nurse practitioners, and nurses’ aides have been let go, which has had a detrimental effect on employee morale and effectiveness. Richard Turan, Nassau Health Care Corp’s President who runs NUMC, claims that the layoffs haven’t hurt the quality of care that patients are receiving, but workers in the hospital and George Walsh of the Nassau Civil Service Employees Assoc, feel that the layoffs are forcing service cuts and patient care is suffering.

NUMC’s chief financial officer Gary Bie says that given the hospital’s rising costs, increased contributions to pensions and health insurance, and inflationary pressures, the layoff’s were necessary to keep within the $284 million dollar budget.

Aside from healthcare workers losing their jobs, which can’t be undervalued, Nassau County residents will feel the negative effects stemming from NUMC’s financial troubles. To see the magnitude of the situation we must recognize the role NUMC plays in the County.

In the late 1990’s Nassau County Medical Center, as well as the County’s nursing home and medical clinics, were sold to the Nassau County Health Care Corporation for $82 million dollars. The medical center became a semi-independent health care agency created for the public benefit, and is a not for profit hospital with a tax exempt status.

Although having the status of a “public benefits corp.” has some deregulation advantages, the hospital bares many more burdens which have left it in a troubled state. With reduced Medicare rates, limited state Medicaid rates, and the hospital serving many nonpaying/uninsured patients, the financial burden is quite costly. Nassau County subsidizes the agency and backs their approximately $260 million in bonds which allow them to operate, but many Nassau officials, who are dealing with the County’s own fiscal recovery, see NUMC as a thorn in the County’s side.

While layoffs and cutbacks are said to save about $18 million dollars this year for NUMC, the hospital will still show a deficit. Today state and local officials are debating on whether to rescue, revamp, shrink, or even close NUMC. The hospital deficit is threatening the credit ratings of Nassau, and some officials feel it isn’t worth all the trouble and expense when there are better rated hospitals in the County; like North Shore University Hospital. However, many officials are also leery about giving up on the medical center and the economic and political repercussions of job and business losses that may come from it.

From the viewpoint of Nassau County residents, can the residents cope with the closing of NUMC and live without the services they provide to Nassau’s poor and uninsured patients? Or will the County taxpayers be saddled with the burden and have to absorb the expense with even greater property taxes to keep the facility running?

Regardless of the eventual outcome, it is a hard pill to swallow.