Ailing N.Y. Hospital Spent Lavishly on Salaries and Perks
March 26, 2012 | Read Time: 1 minute
A nonprofit Brooklyn hospital targeted by a New York State commission for possible consolidation because of its longstanding financial woes spent hundreds of thousands of dollars annually on executive salaries and perks and packed high-level staff with political allies, according to The New York Times.
Wyckoff Heights Medical Center in the low-income Bushwick neighborhood is near default on $109-million in state-secured bonds and is one of several ailing Brooklyn medical centers recommended for privatization or consolidation by a panel of health-care experts convened last year by Gov. Andrew M. Cuomo.
The hospital has frequently sought greater city and state funding and lamented cuts in public aid in recent years, while paying former CEO Rajiv Garg a $700,000 salary and covering his bills for travel, expensive meals, and luxury cars for his use, according to the Times.
Mr. Garg, who had no experience in hospital management when he was hired in 2008, was ousted by the Wyckoff board in December. He defended his tenure, saying the hospital’s credit standing had significantly improved.
Wyckoff, which relies on Medicaid, Medicare, and other government programs to cover care for its largely uninsured patient base, also hired allies of several prominent city politicians for ranking positions. Brooklyn District Attorney Charles J. Hynes is investigating the hospital’s management and has presented evidence to a grand jury.