Nassau University Medical Center, located in East Meadow, New York, is once again under scrutiny following the recent appointment of Richard Kessel as chairman of Nassau Health Care Corporation, the body responsible for overseeing the hospital. The decision comes amid ongoing concerns surrounding the hospital’s financial management and governance.
The medical center has struggled with fiscal challenges over several years. In December 2024, the hospital board named Meg Ryan, the facility’s former general counsel, as its leader in an effort to stabilize operations. However, Ryan’s tenure was short-lived. Within six months, state officials intervened, removing her from the post after she alleged that the state had underfunded Medicaid payments to the hospital by $1 billion over two decades. This revelation led to a series of lawsuits, allegations, and investigations targeting both the hospital and state funding arrangements.
Governor Kathy Hochul’s recent decision to appoint Richard Kessel to oversee Nassau Health Care Corp. has reignited controversy. Kessel’s record includes a tenure at the Long Island Power Authority (LIPA), where he significantly expanded the workforce—from approximately two dozen employees to over a hundred—drawing criticism for allegedly hiring relatives and political allies. A state inspector general investigation found that Kessel had misused ratepayer funds to cultivate relationships with influential individuals.
Kessel’s previous leadership roles also raised ethical questions. In 2011, he resigned from the New York Power Authority amid an audit by the state comptroller that uncovered excessive spending on employee events and perks, including holiday parties, picnics, awards, gifts, and memberships for retirees. An inspector general report from that period further cited “apparent conflicts of interest” that Kessel had not disclosed.
Despite these controversies, Kessel was appointed in 2018 by then-Nassau County Executive Laura Curran to lead the county’s Industrial Development Agency. His tenure there ended in 2023 amidst an investigation into potential ethical breaches, including the propriety of certain donations made through the agency. Shortly thereafter, Governor Hochul appointed him chairman and director of the Nassau County Interim Finance Authority (NIFA). This move drew criticism from former NIFA board member George Marlin, who labeled it “akin to putting the fox in the henhouse.”
Critics argue that Kessel’s history of alleged patronage and financial mismanagement raises serious concerns about the future stewardship of Nassau University Medical Center. Supporters of the appointment, however, maintain that his experience managing large public entities equips him to navigate the complex challenges facing the hospital. As Nassau County’s healthcare system remains vulnerable, stakeholders are closely monitoring Kessel’s leadership amid worries of renewed financial instability and governance problems.
