...The controversy centers on claims that New York State engineered a two-decade scheme forcing the Long Island safety-net hospital to provide its own Medicaid matching funds, potentially violating federal law.
- New CEO Megan Ryan discovered the hospital had been putting up $50 million annually for 20 years in place of required state matching funds for federal Medicaid grants.
The state's own general counsel reportedly deemed the arrangement improper, though state Democratic leaders dispute this characterization.
- When the hospital sued in December 2024 to recover the $1 billion, Governor Hochul seized control of the facility in May 2025, removing it from Republican Nassau County Executive Bruce Blakeman's oversight and firing Ryan and other hospital leaders...