FBI launches investigation into explosive $1 billion corruption scheme that NY officials allegedly used to bleed a public hospital dry before planning to cash in on its land.
At a Glance
- Nassau University Medical Center chairman Matthew Bruderman alleges NY officials deliberately withheld over $1 billion in state funds from the hospital
- Bruderman claims the scheme involved routing federal Disproportionate Share Hospital funds through an offshore entity
- The hospital has filed two Notices of Claim against New York State and the Nassau County Interim Finance Authority
- FBI and Justice Department have launched an investigation into the allegations
- Despite financial challenges, the hospital projects an $11 million profit this year after facing a $200 million deficit two years ago
Billion-Dollar Corruption Scheme Uncovered
In a stunning development that exposes the depths of government corruption, FBI agents are investigating allegations that Long Island and New York officials orchestrated a deliberate scheme to deprive Nassau University Medical Center (NUMC) of over $1 billion in necessary state funding. According to NUMC chairman Matthew Bruderman, this decades-long financial manipulation was designed with a specific goal: forcing the public hospital into such dire financial straits that officials could justify shutting it down, allowing connected insiders to acquire and redevelop the valuable 84-acre property for massive profits.
The scheme allegedly involved manipulating federal Disproportionate Share Hospital (DSH) funds, which are intended to support hospitals serving high numbers of low-income and uninsured patients. Bruderman claims New York State officials created the appearance of meeting their required financial obligations to unlock these federal funds while actually funneling money through offshore accounts in a complex shell game that defrauded both the federal government and the hospital itself.
“This is corruption that is both broad and deep within our State’s government. This wasn’t a clerical oversight, a bookkeeping mistake or incompetence. What we’ve uncovered was nefarious, intentional and the State covered it up for years to starve this hospital and the people it serves of resources.” – asserted hospital chairman Matthew Bruderman.
Legal Action and FBI Investigation
Nassau University Medical Center has filed two formal Notices of Claim against New York State entities, a necessary preliminary step before initiating a lawsuit to recover the allegedly misappropriated funds. The first notice targets the New York State Department of Health for failing to comply with federal Medicaid matching requirements, while the second accuses the Nassau County Interim Finance Authority of professional negligence and breach of fiduciary duty in its oversight role of the hospital’s finances.
The FBI and Justice Department have launched a full investigative probe into these allegations, with Bruderman reportedly cooperating fully with federal authorities. The investigation focuses not only on the alleged financial misconduct but also on the motivations behind it. Bruderman maintains this wasn’t mere incompetence but rather a calculated scheme involving high-ranking officials across multiple administrations with the ultimate goal of redeveloping the hospital’s valuable land.
Government Response and Hospital’s Future
The allegations have met with predictable denials from Governor Hochul’s administration. A spokesperson for the governor dismissed Bruderman’s claims, pivoting instead to concerns about patient care and fiscal management. This response comes despite documented evidence that under Bruderman’s leadership, the once-struggling hospital has made remarkable financial improvements, projecting an $11 million profit this year after facing a staggering $200 million deficit just two years ago.
NUMC serves as one of only five designated DSH hospitals in New York State, making it a critical healthcare provider for vulnerable populations. The alleged scheme not only deprived the hospital of necessary funding but potentially compromised care for thousands of low-income patients who depend on its services. If Bruderman’s allegations prove true, this case could expose one of the most significant public corruption scandals in New York State history, involving billions in misappropriated taxpayer funds.
The investigation continues to develop as federal authorities examine financial records spanning multiple decades and administrations. For a public hospital that has struggled financially for years, these revelations could finally explain why – and potentially pave the way for proper funding and a sustainable future. The outcome of this investigation may ultimately determine whether this essential community hospital survives or falls victim to what Bruderman describes as a long-orchestrated plan to profit from its demise.
