Mineola, N.Y -- Nassau County Executive Thomas R. Suozzi today released the County's report regarding the Nassau Health Care Corporation (NHCC) and its three operating divisions: Nassau University Medical Center (NUMC), A. Holly Patterson Extended Care Facility (AHP) and its community health centers. The comprehensive report, which was prepared by an independent consultant, presents a series of recommendations to save NHCC by modifying its operations in order to continue serving the healthcare needs of the County's neediest residents while at the same time ensuring its financial stability.

"If we don't dramatically reform and redirect the mission of this Hospital, it will collapse under its own weight," County Executive Suozzi said. "We are committed to protecting the healthcare needs of the poorest and most underserved in our County while continuing our focus on its financial stability."

The report, "A Study of the Role of Nassau Health Care Corporation in the Delivery of Health Care to Residents of Nassau County," was commissioned by the County Executive, County Legislature and County Comptroller in August 2003 and was conducted by Manatt, Phelps & Phillips, LLP, with the assistance of several other consultants, as well as an Advisory Committee appointed by the County Executive.

The report's key recommendations for NHCC focus on four areas: workforce reductions, operational and management improvements, labor concessions and debt reduction. The report also cites the need to amend NHCC's enabling statute to make it more accountable and responsive to the local County Executive and County Legislature.

"This report provides a comprehensive roadmap for what actions need to be taken to ensure a viable future for the Hospital and its related entities," County Executive Suozzi said. "It makes clear the need to concentrate the hospital's mission on becoming a first class community hospital in Nassau County."

The County commissioned this study in response to increasing concerns about the potential collapse of NHCC, which has lost substantial sums of money since its creation as a State public benefit corporation in 1999 under a prior administration. At the time of NHCC's establishment, it issued $256 million worth of bonds which were guaranteed by the County. From this borrowing, the County received a one-shot cash payment of $82 million. NHCC received $135 million, and more than $210 million in payments from the County since then, which it has used to cover its operating deficits over the past four years. The County Executive's concern escalated in light of a number of reports issued, including studies by the County and State Comptrollers, which projected that in its current path, NHCC would face a cash crunch by late 2004 or early 2005.

The report released today states, "By virtually any measure, NHCC today stands on the brink of financial collapse. This restructuring is critical if NHCC is to continue to fulfill its essential role in meeting the health needs of the residents of Nassau County, particularly the medically indigent, by becoming a first-class community hospital, without adding to the financial burden of Nassau County and its taxpayers."

Several strategic options were also considered as part of the study, ranging from closure of some or all of NHCC's divisions to maintaining the status quo. The option recommended by the report includes substantially modifying the Hospital's program operations to focus more clearly on its mission and on cost reduction and revenue enhancement. This will involve regionalizing some of the community health care programs through affiliations with other providers, thereby calling on the region's medical community, including its private hospitals, to participate in the implementation of the report's recommended option.

The options with respect to the nursing home, AHP, include reducing its size to between 450 and 680 beds from its current 889, and making use of the vacant space in NUMC as well as building a smaller facility adjacent to the Hospital.

The report also recommends reorganizing the community health centers to more effectively serve their respective communities and improve reimbursement.