Audit, Citing Mismanagement, Finds SUNY Downstate in Dire Fiscal Straits

Tuesday, January 22, 2013
As SUNY Downstate Medical Center bled money over the past few years, 15 of the hospital’s top administrators were paid taxpayer-financed salaries over $200,000, while nearly 500 lower-paid employees were sent layoff notices, according to a state comptroller’s audit released on Thursday. The medical center was so underused that about 100 beds were empty every day in 2010, the audit said. A series of “poor financial decisions” has put it on a path toward insolvency, which could lead to bankruptcy, Thomas P. DiNapoli, the comptroller, said in his audit. The medical center comprises three hospital locations and a major public university. It serves more than 2 million New Yorkers and is the fourth largest employer in Brooklyn. “SUNY Downstate’s fiscal condition is dire, and it needs all hands on deck if it is going to survive,” Mr. DiNapoli said in a statement released with the audit. As a result of bad management, he said, “the hospital is hemorrhaging millions of dollars every week.”

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