By Carrie James
Nassau Health Care Corporation's Board of Directors approved a $469-million budget for the next fiscal year Monday that calls for layoffs throughout Nassau University Medical Center in East Meadow, as well as at its clinics and extended-care facility. The cuts are seen as a desperate measure aimed at saving the ailing health-care system from economic collapse.
"We have to set some priorities, and our first priority is to provide good quality health care to our patients," said Richard Turan, the health-care corporation's chief executive officer. "With this budget, we saved probably $58 million, and of that, $23 million needed to come out of payroll expenses and personnel costs."
Board members Rita Wallace and Sam Prioleau voted against the proposed budget, which almost passed in November but fell one vote short. Many employees and union members shouted their disapproval of the vote, which occurred before public opinion could be heard.
"That's absurd you would vote on a budget first," said Nassau Civil Service Employees Association President Tony Giustino, according to a published report. "It's unconscionable. You're running this like a private corporation, and not a public corporation."
The approved $469-million budget has been called a bare-bones spending plan by many, including Turan. The administration spent months trying to pare a projected $75-million deficit down to a more attractive $17-million shortfall in 2002. The savings came from cutting $30 million in expenses, and the remaining $28 million was arrived at by reducing jobs and cutting fringe benefits.
The hospital will save roughly $23 million by eliminating the 400 to 500 positions, Turan said, although it was not something he or members of the board wanted.
"Since the last board meeting, we have met several times with the union," Turan said. "There were two items on the agenda. One is that we work together to try to find additional resources of funding. We have done that all year. The union visited some of the same places we did, and they came back with nothing.
"The other item was what they could do to help us," Turan continued. "They could help us modify the contract to help us a little. But they have been steadfast in their unwillingness to modify the contract."
Both Turan and board members said there is still time to address the layoffs and potentially save jobs, if the union reconsiders its position on the contracts, or other revenue sources appear.
Board member Jeff Stadler said the board is being realistic. The board would be happy to halt layoffs, but that's not possible at this time. "We are not against you. We are with you," he said.
Giustino hopes a federal economic stimulus package might come in the next few months to curb layoffs. He also said he is looking into the legality of the board's vote before hearing public comment.
As for the layoffs, Turan said nothing is final. He and other administrators are looking at each department to see which staffs are bloated and where cuts can be made.
"We need to right-size ourselves," Turan said. "We are going to survive. We're in the process of deciding where to make the layoffs. Nothing is final until it's been done.
"Layoffs are just a terrible thing, and we're only doing it as a last resort," he added. "With this budget, it means that the hospital has a plan to survive."
