Waste of the Day: Hospital CEO Paid Herself, Colleagues Before Resigning

This story originally was published by Real Clear Wire.

By Jeremy Portnoy
Real Clear Wire

Topline: Megan C. Ryan, former CEO of the public Nassau University Medical Center on Long Island, New York, authorized a $3.5 million payout of taxpayer funds to herself and 12 colleagues days after announcing her resignation, Newsday first reported.

Key facts: On May 31, Gov. Kathy Hochul announced what is essentially a state takeover of the hospital, with new oversight laws and four state officials added to the hospital’s Board of Directors.

Days before, Ryan announced she would resign as CEO effective July 20. Her exit was quickly expedited — the new Board voted to fire Ryan for cause on June 18. A letter the Board sent to Ryan claims the $3.5 million payout Ryan authorized contains “at least $1 million” of excess funds that do not have a “valid business purpose” and that Ryan and her colleagues were never entitled to, Newsday reported.

Ryan does not dispute approving the $3.5 million payment but says she and the other employees who resigned along with her were owed the full amount for salary and unused vacation and sick time. She says the allegations are a “political hit-job” and plans to sue the Board of Directors to clear her name. The Board told Newsday they stand behind the accusations.

A spokesperson for Ryan told OpenTheBooks, “Unlike previous CEOs, who racked up hundreds of thousands in inappropriate expenses, Ms. Ryan, during her short tenure, personally paid thousands of dollars for initiatives that were not reimbursed, including food for employees, transportation, and supplies for community events.  Any suggestion that she did anything improper or was reimbursed inappropriately is just another effort to distract from the State’s Medicaid corruption, now under investigation by Congress, the millions in illegal no-bid contracts approved by Hochul’s new appointees and [the hospital’s] violation of Ms. Ryan’s employment contract.”

Regardless of whether the payments were legal, they are a huge expense for a hospital that has teetered on the edge of bankruptcy for years. NUMC is the only public hospital in Nassau County, and relies on federal, state and local funds. It has posted a $700 million deficit over the last decade, prompting the state takeover. Nassau County Legislator Siela Bynoe said in 2024 that there was a “real possibility” of the hospital closing its doors.

Despite the budget troubles, NUMC doctors are among the highest-paid public employees in New York. OpenTheBooks previously reported that four doctors each earned over $2 million from 2017 to 2023 from salary and pensions.

The hospital spent $241.7 million on payroll in 2024, with 3,083 people earning between $200,000 and $667,000.

Ryan earned $250,000 in salary last year, according to payroll records. OpenTheBooks has filed an open records request to see what additional compensation Ryan earned last year, if any.

Search all federal, state and local salaries and vendor spending with the world’s largest government spending database at OpenTheBooks.com. 

Summary: Public officials around the country often bill taxpayers for unused vacation time and other perks, but it’s especially hard to justify at a hospital that barely has enough money to function.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

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