NUMC Execs Charged Steak and Lobster to Struggling Hospital Before State Takeover: Report

A Controversial Dinner and Financial Disputes at Nassau University Medical Center

Just days before the state took control of Nassau University Medical Center (NUMC), its top executives were caught spending nearly $1,500 on a dinner at a high-end Manhattan steakhouse. This revelation has sparked outrage among officials and the public, highlighting deep financial mismanagement at the hospital, which is currently over $1 billion in debt.

The incident occurred on May 29, just hours before Governor Kathy Hochul was set to appoint new leadership for the struggling hospital. The meal, held at the Lobster Club in Midtown, included a $175 lobster, $68 Wagyu skirt steak, and an array of sushi. Seven executives, including former CEO Meg Ryan, attended the event. According to the Nassau County Interim Finance Authority, this was an "absolute outrage."

Richard Kessel, chairman of the authority, criticized the decision to spend hospital funds on such an extravagant meal. He pointed out that the hospital was facing severe financial challenges, with very low cash reserves. “These guys were supposedly working for the betterment of the hospital and the taxpayers?” he questioned.

The executives had just returned from the Greater New York Hospital Association Annual Meeting when they dined at the restaurant. According to reimbursement records obtained by Newsday, the expenses far exceeded the hospital’s guidelines. Under NUMC’s expense policy, employees are expected to keep meals within $50 for dinner, yet the group spent significantly more.

In the months leading up to the state takeover, Ryan and her team incurred thousands in travel expenses. These included a nearly $3,000, three-night stay at the Willard InterContinental in Washington, D.C., a $1,000 hotel bill in Albany, and almost $8,000 for round-trip flights to a Chicago health care conference.

Tom Basile, a spokesperson for Ryan, defended her actions, stating that she only briefly stopped by the dinner and did not eat any food. He also claimed she wasn’t responsible for organizing the event or submitting the reimbursement. Basile added that Ryan frequently traveled to meet with government officials and speak at events, often covering the costs herself.

He emphasized that many of Ryan’s expenses were aimed at lobbying for additional resources and advocating for the restoration of $1 billion in funding illegally withheld by the state. Basile noted that while the state and new hospital leadership criticize Ryan’s previous expenses and her salary of $550,000, the new CEO, Richard Becker, earns over $760,000 annually.

Unlike previous CEOs, who racked up hundreds of thousands in inappropriate expenses, Ryan personally paid thousands of dollars for initiatives that were not reimbursed, including food for employees, transportation, and supplies for community events, according to Basile.

Ryan was officially terminated “for cause” the day after the dinner, with officials alleging she improperly authorized $3.5 million in separation payouts to herself and a dozen other executives before stepping down. She denies these claims and has since filed a lawsuit against the hospital challenging the termination and disputing the allegations.

The spending is now under review as part of an ongoing audit ordered by the hospital’s new leadership. This controversy highlights the complex financial and ethical challenges facing NUMC as it transitions into state control. The situation continues to draw attention from both the public and officials, who are demanding transparency and accountability.