Nassau University Medical Center Files Notices Against New York State Alleging 'Shortchanging Ruse'

Pollock Cohen, along with co-counsel Susman Godfey, has filed two Notices of Claim alleging that New York State shortchanged Nassau University Medical Center of more than $1 billion. The first was filed with New York Attorney General Letitia James putting the State Department of Health on notice for failing to comply with federal Medicaid matching requirements; and the second was filed against the Nassau County Interim Finance Authority alleging professional negligence and breach of fiduciary duty among other charges.

Notices are the required first steps in filing a lawsuit against the State and an Authority to recover the money. P|C also sent “Requests for Compliance” to the State Department of Health and the Nassau County Interim Finance Authority asking them to ensure that the ruse described in the Notice letter is immediately corrected – ensuring that the Hospital receives the $100 million it is entitled to annually from the state and federal governments.

The State Notice of Claim spells out a scheme that the State has allegedly engaged in for more than 20 years. Nassau University Medical Center is one of only five hospitals in the state that are designated “DSH” hospital – safety net hospitals that provide essential care to a disproportionately large number of low income and uninsured patients. As a result, the Hospital is entitled to receive federal matching funds under a special Medicaid program. But the State has an obligation to provide matching funds as well. That Notice of Claims spells out a ruse whereby the state intentionally gave the appearance – and representations to the federal government – that it was meeting its financial obligations, but was not.

The Authority Notice of Claim spells out allegations of failed oversight and defamation by NIFA.