Suozzi Gives Hospital 60 Days
To Develop New Business Plan

$6 Million Earmarked to Fight Diseases that Disproportionately Affect Minorities, Such as Diabetes, Asthma, Cancer and Stroke

          Mineola, NY – Nassau County Executive Thomas R. Suozzi today directed the Nassau Health Care Corporation to deliver a new strategic business plan in 60 days. 

Arthur Gianelli – the Former Deputy County Executive for Budget and Finance – has been appointed by NHCC President and CEO Daniel Kane as NHCC’s new executive vice president and chief operating officer, charged with leading the revision and update of NHCC’s strategic plan.

The Nassau County Legislature yesterday approved Suozzi’s plan to secure $120 million from the proposed refinancing of the county’s share of the historic settlement with big tobacco companies. The bulk of the money, $98 million, is earmarked for the NHCC, to help keep the public health system’s financial turnaround on track and to support its mission to serve Nassau County’s residents. The remaining $22 million is designated for preventive health programs, including a veterans clinic.

 “Yesterday the Legislature approved the plan, and today the real work begins,” Suozzi said. “I 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,” Suozzi said. “Art’s arrival at the hospital signals an important step. His tireless work, determination and dedication were key factors in Nassau County’s turnaround during our first term. NHCC is fortunate to have someone as talented and tireless as Art as a member of its executive team.”

“Art’s experience in operational planning, budgeting and finance will be of immense help to us in achieving the operational and financial improvements that we need to make,” said Kane.

 Several states sued big tobacco companies to try to recover their share of Medicaid payments spent to treat smoking-related health problems. The tobacco companies settled the suits in 1998 and 1999, agreeing to pay out billions of dollars over the next 25 years to states and counties.

“The importance of making the tobacco settlement monies available to support the NHCC cannot be overstated,” Kane said. “Without these monies, the NHCC’s ability to fulfill its mission as the safety net hospital in Nassau County would be seriously imperiled.”

Of the $98 million earmarked for NHCC, $80 million will be set aside for debt reduction and debt service relief, and to cover any of NHCC’s immediate cash needs. Like other public hospital systems, NHCC must continue to strive for efficiency while fulfilling its mission to care for all Nassau County residents, particularly the poor. And it must do so while coping with federal and state budget reductions. This $80 million will help support the county’s healthcare system even when outside conditions dictate an adjustment to its turnaround plan, first launched in 2004.

“NHCC’s fiscal health is vital to the county’s fiscal health,” Suozzi said. “The county is the guarantor of the health system and so the better shape it’s in, the better shape we’re in. This refinancing gives the hospital a shot in the arm, helping us keep the NHCC turnaround plan on track. It also provides extra funds for a number of very important countywide health programs.”

Of the remaining $18 million of the $98 million earmarked for the NHCC, $12 million is reserved for an early retirement program for the health system’s employees, ensuring further savings in the future. And $6 million is designated for new NHCC initiatives to increase minority access to health care. Studies have shown that minorities have higher rates than whites of various diseases, such as cancer, diabetes and stroke.

The Legislature also approved funding for a two-year extension of the stabilization agreement to keep the turnaround plan on track. “I’m very pleased that the legislators continue be our partners as we take the next step to help turn around this vital institution,” Suozzi said.

The NHCC runs the Nassau University Medical Center in East Meadow, the A. Holly Patterson nursing home in Uniondale and health clinics in several communities.

Of the remaining funds, $10 million is designated for preventive health initiatives, and $1 million for Nassau County’s veterans clinic.

“We will be able to wring even more money from this historic settlement by being financially creative and refinancing our share,” Suozzi said. “And I can’t help but see some poetic justice here. Money from big tobacco – which does so much damage to our citizens’ health – is actually being used to bolster our public health system, and the fiscal health of county as well.