By Hector Flores
Weitzman¹s report, which reviewed NUMC¹s available cash as of April 14, found that the hospital¹s available funds had fallen from $12.9 million in March to $3.6 million in April. Weitzman added that the hospital¹s working capital fell to $2 million, which he said is a critically low level for an agency with an annual budget of around $490 million. In addition, Weitzman said that the corporation has been deferring payments on a number of accounts payable, which he believes will lead to a deterioration in the relationships between the hospital and its vendors.
³Nassau¹s public hospital is in critical condition,² Weitzman said. ³Nassau University Medical Center remains the only safety-net hospital system for Nassau¹s uninsured population. In addition, because the county guarantees the corporation¹s $300 million debt, its failure could have a drastic effect on Nassau County¹s own finances. Nevertheless, before the county agrees to provide any additional subsidies to NHCC, we must have a sensible strategic plan in place and a commitment by the management team to carry it out.²
Shelley Lotenberg, a spokeswoman for NHCC, said that at a meeting held on April 10, NHCC¹s board of directors discussed the corporation¹s critical cash position, and is working on alternative measures to pay its bills and recoup the money owed to the hospital.
³As of April 10, the NHCC had a negative unrestricted cash balance of $3.6 million, and with the approval of the board of directors is drawing on its restricted cash reserves to meet operating needs,² Lotenberg said. ³As of Feb. 28, the NHCC had $13.7 million in unrestricted cash on hand and $33.54 in cash whose use is restricted.²
Lotenberg added that the NHCC has yet to receive $6 million from the state for its services, and efforts are in the works to expedite the county¹s payment of $14 million in hospital services.
³Based upon recent meetings with state officials, the NHCC expects to receive an additional $5.5 million in nursing home reimbursement, beginning Jan. 1, as was contemplated in the 2006 operating budget,² Lotenberg said. ³An adjustment in hospital intergovernmental transfer payments could result in $16 million in additional revenues attributable to 2005 and going forward.²
In March, in an effort to reverse its financial woes, NHCC named Arthur Gianelli, former deputy county executive, as its new chief operating officer. Gianelli is currently preparing an updated financial plan implemented by the county¹s consultant, Manatt, Phelps, which sought to decrease hospital spending by enacting cost-cutting initiatives.
In addition, Nassau County Executive Thomas Suozzi has secured $120 million from the proposed refinancing of the county¹s share of the tobacco industry settlement. The bulk of the money, $98 million, has been earmarked for the NUMC, to help keep the public health system¹s financial turnaround on track and to support its mission to serve county residents. The remaining $22 million is designated for preventive health programs and a veterans¹ clinic.
