COMPTROLLER WEITZMAN CALLS ALLOCATION OF TOBACCO MONEY
FOR HOSPITAL BAILOUT “PREMATURE”

Nassau County Comptroller Howard S. Weitzman today issued the following statement regarding the proposed use of nearly $100 million in proceeds from the refinancing of the county’s tobacco settlement to provide additional subsidies to the Nassau Health Care Corporation (NHCC):

“I agree with County Executive Suozzi’s strategy of refinancing the tobacco settlement to maximize the financial benefit to the county.  However, it does not necessarily follow that some or all of those funds should immediately be earmarked to provide additional subsidies to the Nassau Health Care Corporation (NHCC).

“The Nassau University Medical Center is essential to the county’s well-being and must not be allowed to fail.  Yet more than two years after the original rescue plan for NHCC was announced, most of it still remains to be implemented.  The rescue plan needs to be revisited in light of changes in the external healthcare environment – including cost increases and declining state and federal aid – that are detrimental to the finances of public hospitals.

“We need to see the revised rescue plan before the county even begins to consider adding new subsidies to the current $22 million subsidy the county provides.

“NHCC management, along with the consultant Manatt, Phelps & Phillips, will conduct a review and update of the NHCC rescue plan.  I welcome the addition to the corporation’s 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 corporation’s 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.  Making a financial commitment now, however, before NHCC and its consultants have reviewed and finalized their strategic plan, would be premature.