FBI launches investigation as $1 BILLION alleged to have been secretly siphoned from public hospital to engineer its failure and cash in on prime real estate.
At a Glance
- Nassau University Medical Center chairman Matthew Bruderman alleges NY state officials conspired to financially collapse the hospital by withholding over $1 billion in funding
- FBI and Justice Department are investigating claims that officials wanted the hospital to fail so they could profit from redeveloping its valuable land
- Hospital has filed two Notices of Claim against New York State, a precursor to potential lawsuits
- Bruderman claims officials used offshore accounts to temporarily “loan” funds to appear compliant with federal matching requirements
- Despite the alleged scheme, NUMC has recently turned its finances around, projecting an $11 million profit after previous $200 million deficit
The Billion-Dollar Hospital Heist
In what might be one of the most brazen examples of government corruption in recent memory, Nassau University Medical Center (NUMC) chairman Matthew Bruderman has blown the whistle on what he describes as a deliberate, decades-long conspiracy by New York officials to bankrupt a public hospital.
The FBI is now investigating bombshell allegations that state and local officials intentionally withheld over $1 billion in funding from the Long Island hospital with the express purpose of forcing its closure. Why? To get their hands on prime real estate, of course. Because in the minds of these bureaucrats, who needs healthcare when there’s a land deal to be made?
Bruderman isn’t mincing words about what he discovered after taking the helm at NUMC. He claims this wasn’t just fiscal negligence or bureaucratic bungling – this was a calculated scheme spanning multiple administrations. “This was an intentional withholding of funds,” Bruderman told the New York Post. “It was not a clerical error. It was not a mistake.”
The alleged plot involved New York State failing to pay its legally required share of funding to NUMC, which serves as one of only five designated safety-net “DSH” hospitals in the state, providing critical care to low-income and uninsured patients.
Shell Games with Public Health Dollars
The elaborate financial shell game allegedly worked like this: when federal authorities would check if New York was meeting its obligation to provide matching funds to NUMC, previous hospital leadership – apparently in collusion with state officials – would temporarily “borrow” money from offshore accounts to make it appear the state had paid its share. Once the federal matching funds were released, the borrowed money would be returned. This offshore money laundering scheme went undetected for years while the hospital was systematically drained of resources needed to provide basic healthcare to vulnerable populations.
The hospital has formally filed two Notices of Claim against New York State, a required first step before bringing lawsuits. The first notice targets the state Department of Health for allegedly failing to comply with federal Medicaid matching requirements, while the second goes after the Nassau County Interim Finance Authority for professional negligence and breach of fiduciary duty. These notices mark the opening salvo in what promises to be a protracted legal battle to recover funds that should have gone toward patient care instead of being diverted through creative accounting.
The Real Estate Motivation
According to Bruderman, this wasn’t just about pinching pennies or typical government mismanagement – there was a profit motive at play. The alleged conspiracy aimed to deliberately weaken the hospital financially until closure became inevitable, at which point state and local leaders could swoop in to redevelop the valuable property. It’s a perfect example of how the progressive politicians who claim to champion healthcare for all are perfectly willing to sacrifice a hospital serving underprivileged communities when there’s a buck to be made on real estate development.
Governor Kathy Hochul’s administration, predictably, has denied the accusations. Her press secretary Anthony Hogrebe stated, “These allegations are not true.” Instead of addressing the specific claims about missing funds, Hogrebe tried to change the subject: “The state continues to work with Nassau Health to ensure they can provide quality patient care in a fiscally responsible way.” That’s political-speak for “nothing to see here, folks, move along” – the standard response when someone uncovers where the bodies are buried.
Turning the Tide Despite Sabotage
The most remarkable part of this story might be that despite the alleged decades-long financial sabotage, Bruderman has managed to right the ship. Under his leadership, NUMC has made a stunning financial recovery, projecting an $11 million profit this year after suffering a $200 million deficit just two years ago. This turnaround not only demonstrates competent management is possible in public healthcare, but also serves as stark evidence of just how badly the hospital had been mismanaged – or perhaps deliberately undermined – in previous years.
The FBI and Justice Department are now digging into these explosive allegations, though both have declined to comment on the investigation. If proven true, this case represents an unprecedented level of corruption involving public health dollars – a scheme that put lives at risk by deliberately underfunding critical healthcare services for some of New York’s most vulnerable citizens. It’s the kind of government corruption that makes even the most jaded observers of New York politics gasp in disbelief – and exactly what happens when one-party rule allows progressive politicians to operate without accountability for decades.
