Nassau University Medical Center gets $109.6M in state funding

East Meadow-based Nassau University Medical Center received $109.6 million in state funding as continued efforts aim to ease the public benefit hospital’s financial strain. The hospital serves at-risk patients in Nassau County and is operating under new leadership.

The funding includes $82.1 million from the Department of Health‘s Vital Access Provider Assurance Program (VAPAP) for state fiscal year 2025-26 and $27.5 million from an Inter-Governmental Transfer (IGT) tied to enhanced federal Medicaid funding during the COVID-19 public health emergency.

Of the VAPAP funds, $25 million was received in August 2025, with the remaining $57.1 million expected in the first quarter of 2026. The $57.1 million balance and the $27.5 million IGT funds were not included in NUMC’s previously approved budget and, according to the hospital, will reduce the hospital’s projected 2026 operating loss to $82.5 million from $167.1 million.

The hospital has struggled financially for years. Increasing medical costs, political in-fighting, inflation, challenges with Medicaid reimbursement and a reduction in New York State aid have all played a role in the financial challenges faced by NUMC, as LIBN has previously reported.

The investment announced late Thursday afternoon follows a year of changes under NUMC’s new board. With Tom Stokes now serving as CEO, the hospital is set to continue implementing reforms, according to NUMC officials. In his first days, Stokes has highlighted areas to improve performance, while ongoing efforts focus on enhancing financial oversight, controlling costs, and improving revenue and operational efficiency.

“I am deeply committed to restoring and strengthening this hospital for the patients and communities who depend on us,” Stokes said in a news release about the funding.

“Gov. Hochul’s support affirms that our work is headed in the right direction,” he added. “With this critical investment, we can continue building a stronger, more stable future for NUMC – one that delivers the quality, access, and accountability our residents deserve.”

“This funding acknowledges the difficult but necessary reforms underway and provides the financial runway needed to continue stabilizing operations, improving care delivery, and positioning the hospital for long-term sustainability,” Stuart Rabinowitz, chair of the Nassau Health Care Corporation Board, said in the news release.

“This funding marks an important step forward for NHCC and reflects growing confidence in the direction of its leadership,” Richard Kessel, chairman and director at the Nassau Interim Finance Authority, said in the news release. “We look forward to continued collaboration in supporting NHCC’s financial stability and ensuring that public resources are managed effectively.”