By Hector Flores
The announcement was made after the county Legislature approved County Executive Thomas Suozzi¹s plan to secure $120 million from the proposed refinancing of the county¹s share of the tobacco industry settlement. The bulk of the money, $98 million, is earmarked for the NUMC, to help keep the public health system¹s financial turnaround on track and to support its mission to serve the county¹s residents. The remaining $22 million is designated for preventive health programs and a veterans¹ clinic.
³I am issuing a challenge to the hospital, Art Gianelli and other stakeholders to develop a new plan that meets the changing needs of this vital health system,² Suozzi said. ³Art¹s arrival at the hospital signals an important step. His tireless work, determination and dedication were key factors in Nassau County¹s turnaround during our first term. NHCC is fortunate to have someone as talented and tireless as Art as a member of its executive team.²
Kane added that Gianelli¹s experience in operational planning, budgeting and finance will be of immense help in achieving the operational and financial improvements that hospital administrators need to make.
County Comptroller Howard Weitzman said that NHCC should complete its first bailout program before it dips into the tobacco money. ³I agree with County Executive Suozzi¹s strategy of refinancing the tobacco settlement to maximize the financial benefit to the county,² Weitzman said. ³However, it does not necessarily follow that some or all of those funds should immediately be earmarked to provide additional subsidies to the NHCC.²
Weitzman explained that two years ago, the county enacted its own rescue plan, and most of it still remains to be implemented. He said that the original plan, which included cost-cutting initiatives, still needs to be revisited in light of the hospital¹s ongoing cost increases and declining state and federal aid.
³NHCC management, along with the consultant Manatt, Phelps & Phillips, will conduct a review and update of the NHCC rescue plan,² Weitzman said. ³I welcome the addition to the corporation¹s management team of Art Gianelli, whose integrity and financial expertise will help boost public confidence in NHCC. Once the revised plan is in place, the corporation¹s management and the county must commit to do whatever is necessary to preserve the hospital and the community health services that are so essential to Nassau residents.²
The tobacco settlement is the result of lawsuits engaged by several states in an effort to recover their share of mandated Medicaid payments spent on treating smoking-related health problems. Tobacco companies settled the suits in 1998 and 1999, and agreed to pay out billions of dollars to states and counties over 25 years.
Comments about this story? HFlores@liherald.com or (516) 569-4000 ext. 283.
