The Nassau Health Care Corporation came into existence on Feb. 6, 1997 as a public benefit corporation to develop and manage a health care system which would provide health care services and health facilities for the benefit of the residents of the State and the County, including to persons in need of health care services who lack the ability to pay.

The Corporation has the power under the Act to acquire, operate and manage health care facilities and to issue bonds and notes to finance the costs of providing such facilities.

The Corporation is in the startup phase of its operations and intends to provide health care services in accordance with its statutory and contractual mandate by applying a portion of the proceeds of the Series 1999 Bonds to acquire the Health Facilities from the County pursuant to the Acquisition Agreement. Under the Act, the County is authorized to sell, transfer, convey, lease or license all or portions of the County's health care facilities and operations (including the Health Facilities) to the Corporation.

Under the Act, the Corporation is governed by a board of fifteen voting directors, of whom eight are appointed by the Governor (two on recommendation of the County Executive, three on recommendation of the majority leader of the County Legislature, one on the recommendation of the minority leader of the County Legislature, one on the recommendation of the Speaker of the State Assembly and one on the recommendation of the Temporary President of the State Senate), four by the County Legislature and three by the County Executive. In addition, there are three non-voting directors, which include the President/Chief Executive Officer of the Corporation as appointed by the board of directors, one director selected by the County Executive and one director selected by the County Legislature. While the directors serve varying initial terms of two to four years upon the establishment of the Corporation, following their initial term, directors shall serve for a term of five years.

The County Executive, under the Act, selects one of the fifteen voting directors as the Chairman of the Board. The board of directors is required under the Act to select the Chief Executive Officer, subject to the approval of the County Executive. The Chief Executive Officer serves at the pleasure of the board.