The former CEO of Nassau University Medical Center is taking legal action against her previous employer, alleging breach of contract, gender discrimination, and defamation, as well as claiming retaliation from Gov. Kathy Hochul’s allies for her attempts to recover $1 billion in state Medicaid funding.
Meg Ryan, the ex-CEO of NUMC, has filled a lawsuit against the Nassau Health Care Corporation (NHCC) along with its interim CEO Richard Becker and the board appointed by Hochul earlier in June.
The legal complaint, submitted in New York State Supreme Court on Friday, asserts, “Following a political shift in the Corporation’s Board, NHCC terminated her services without justification and falsely categorized the dismissal as being for ‘Cause’ to manipulate public sentiment and withhold the severance payments Ms. Ryan is entitled to.”
The filing further claims that Becker, NHCC board chairman Stuart Rabinowitz, and Nassau County Interim Finance Authority Chairman Richard Kessel conducted a “shameless and relentless media campaign” aimed at tarnishing Ms. Ryan’s reputation, all to serve their political interests and divert attention from government misconduct that she effectively brought to light.
While in charge of NUMC, Ryan initiated a lawsuit in December 2024 against New York State to reclaim $1.06 billion in federal Medicaid funding that the hospital had been unjustly denied for many years.
If successful, this suit could have mandated the state to return the funds to the hospital, which serves as the only public medical institution in Nassau County. With around 80% of its 275,000 patients being uninsured or low-income, they heavily depend on programs like Medicare and Medicaid.
The complaint points out that Hochul’s purported “takeover” included firing the attorneys representing the hospital in its case against the state and retracting the Medicaid fraud claim. This action seemingly aimed to address a $1 billion budget deficit, according to the suit.
A budget agreement established in June between Hochul and Albany lawmakers forced the implementation of a state-run board at NUMC, stripping local officials of their leadership roles in the hospital.
It is alleged that Hochul’s appointees leaked information to the press claiming that Ryan and other outgoing NUMC executives incurred a $1,500 bill at the Lobster Club in Midtown just before the state takeover. Her legal team has denounced these allegations as completely unfounded.
The newly appointed NHCC board filed a lawsuit against Ryan in August for $10 million, claiming she misappropriated at least $1 million through inappropriate exit payments.
In response, Ryan’s lawsuit argues that the NHCC board awarded over $10 million in no-bid contracts, breaching “state procurement, transparency, and public officer laws.”
Representatives for Hochul have previously denied any wrongdoing and emphasized that the “restructured board has been empowered to take necessary actions to protect these priorities and safeguard the future of this vital community hospital.”
“The shocking degree of waste, misuse, and mismanagement under NUMC’s prior administration is a disservice to taxpayers and contradicts the hospital’s mission,” a Hochul spokesperson stated on Friday. “Recent discoveries reinforce Governor Hochul’s prompt actions to revamp the board and introduce accountability to this critical safety-net institution.”
Additionally, the complaint points out that Becker’s salary exceeds Ryan’s by 28%, a “huge pay gap that can only be justified by the fact that Becker is male and Ms. Ryan is female,” it contends.
“Since June, members of the NHCC leadership have made numerous unfounded allegations against Ms. Ryan to gain cheap political advantage ahead of the upcoming November election,” attorney Alex Hartzband remarked in a statement.
“Ms. Ryan has initiated this lawsuit to clarify her position and recover what she rightfully deserves.”
The NHCC did not respond to requests for comment immediately.
