North Shore University Hospital facing lawsuit for alleged unpaid fees
Great Neck Water Pollution Control District claims the hospital owes more than $1 million in past due charges.
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The Great Neck Water Pollution Control District is taking legal action against North Shore University Hospital.
The district claims the hospital owes more than $1 million in past due fees, putting a financial strain on its annual budget.
Those payments are treatment costs and charges required by a 30-year contract the parties signed in 2018, beyond the annual base rate fee, officials say.
District Commissioner Steve Reiter says the obligation of $1,006,893 is approximately 6% of their annual operating budget.
“Within the last two years, they began a bad-faith process of refusing to pay the treatment charges which were clearly due,” Reiter said.
“Discussions and negotiations to date have not been fruitful in resolving all these past-due charges, and in the interest of our taxpayers, we will have to take legal action,” the Commissioner continued.
Established in 1914, the Great Neck Water Pollution Control District serves over 25,000 residents and commercial properties.
North Shore University Hospital released the following statement:
"North Shore University Hospital sued the Great Neck Water Pollution Control District in July 2024 over its excessive fees and penalties, and its interference with the hospital's delivery of patient care. NSUH has since moved to amend its complaint to address additional fees and other actions by the District in breach of our agreement.
Despite every effort to resolve these disputes - including paying the District's disputed invoices under protest for two years, which has amounted to more than $2 million this year alone - NSUH has had no alternative but to litigate to protect its patients and continue providing the care this community needs.
We remain committed to resolving this matter. But we will not pay charges that no contract authorizes."
