Nassau University Medical Center has announced it is filing an official notice of intention to file a claim as the first step to sue the state of New York.

According to hospital officials, the suit is based on longstanding violations of federal law in connection with the state’s handling of aid for Nassau University Medical Center.

According to the notice of claim, “the state orchestrated a ruse to fool the federal government by requiring NUMC to pay the non-Federal share [of DSH funds] from its own account. Specifically, the State required NUMC to wire the Nassau County Treasurer $50.1 million, in early 2024, from NUMC’s operating account. That operating account is funded by the payments received by NUMC from patients, insurers, and Medicaid. The County Treasurer then wired NUMC’s $50.1 million to the State Department of Health. The Department of Health returned the $50.1 million to NUMC in June 2024, together with the federal share, i.e., together with the $50.1 million that the State had received from the federal government. As a result, NUMC did not receive, in June 2024, the $100.2 million DSH payment to which it was entitled. NUMC received half that amount because the state required NUMC to fund the non-federal share of the DSH payment of $50.1 million from NUMC’s own operating account. NUMC has been the victim of similar schemes since at least 2001…”