The board of directors of the Nassau Health Care Corporation, at a meeting held last week, took important steps to ensure the institution's viability and future growth and development. Following approval of these actions, Board Chairman Lawrence Gottlieb stated that each of the steps taken will play a major role in achieving financial stability, improved operational performance and growth of programs and services at the Nassau University Medical Center (NUMC), the A. Holly Patterson Extended Care Facility and the corporation's seven Community Health Centers.
The board of directors adopted, as a guide, the Manatt Report dated Jan. 27, 2004, and approved implementation of its major recommendations by Daniel A. Kane, newly appointed president/CEO of the Nassau Health Care Corporation. The board also approved the filing of Certificates of Need to carry out a number of program expansions and to locate the replacement facility for A. Holly Patterson Extended Care Facility to NUMC's East Meadow campus.
"The plans for a replacement facility for A. Holly Patterson will provide for a modern facility, with all the amenities nursing home residents deserve and which would not be possible in Uniondale because of the age and lay-out of the building," said Kane. "The proximity to Nassau University Medical Center will benefit the residents by providing greater and easier access to all the services provided at the hospital."
The board approved an approximately $259 million bond debt refunding with the assistance of Nassau County and/or NIFA. The refunding of the bonds will enable the Nassau Health Care Corporation to access approximately $26 million of cash now held in the debt-service-reserve fund for the current bonds and to lower the current interest rates to yield present-value savings.
In September 1999, Nassau County and the Nassau Health Care Corporation, setting forth the terms of the sale of Nassau County assets to Nassau Health Care Corporation and defining the future obligations of the parties to one another, entered into an acquisition agreement.
The resolution authorizing the stabilization agreement clarifies the obligations that Nassau County and the Nassau Health Care Corporation have for each other. According to Gottlieb, the stabilization agreement represents an acknowledgement by Nassau Health Care Corporation and Nassau County that the current acquisition agreement has to be renegotiated.
In order to improve the functioning of the Nassau Health Care Corporation, Kane reviewed with the board, changes in the management structure that he plans to implement. He was also authorized to develop a Management Compensation Plan that ensures the reasonableness of Nassau Health Care Corporation senior management compensation and was empowered to engage recognized experts in health-care compensation to assist in the development of the plan.
The board of directors ratified salary increases previously granted to non-bargaining unit employees below the level of CEO. It also granted Kane, as CEO, the authority to hire and terminate the employment of personnel, establish salaries and salary increases in accordance with the Management Compensation Plan.
"The actions the board of directors has taken will ensure that Nassau Health Care Corporation's mission of serving the health care needs of the residents of Nassau County is not only preserved, but enhanced," said Kane.