New York City to Take Over Troubled Maimonides Hospital
Mayor Eric Adams, alongside hospital officials, announced on Monday that New York City will assume control of Maimonides Hospital, a healthcare system in Brooklyn facing financial challenges.
This merger with the city’s public hospital organization, Health+Hospitals, has been backed by Governor Kathy Hochul, who plans to allocate $2.2 billion over five years to preserve health services in the Borough Park area and its surroundings.
“By bringing our healthcare systems together, we will ensure that Brooklyn residents, along with all New Yorkers, get the quality care they deserve,” Adams stated.
Maimonides’ financial struggles primarily stem from a high volume of patients who are insured through Medicaid, the government health program designed for individuals in need.
In past years, Albany has injected hundreds of millions into the hospital to keep it operational.
The merger is expected to improve Maimonides’ financial health by securing better Medicaid reimbursement rates for services provided to these patients, as detailed in a statement from Adams’ office.
Health+Hospitals currently manages 11 hospitals, 29 clinics, and five long-term care facilities throughout New York City.
Maimonides Health operates three inpatient facilities and has over 80 clinics in the Orthodox Jewish community of Brooklyn, employing around 7,000 individuals and featuring 1,800 doctors.
Adams expressed gratitude towards Governor Hochul, Dr. Mitchell Katz, and others involved in this vision of ensuring reliable care for all patients.
The merger is anticipated to conclude by April.
However, not everyone is on board with the decision. Brooklyn City Council member Simcha Felder voiced strong opposition, labeling the merger as one of Hochul’s significant missteps, suggesting it might be a tactic for her re-election efforts.
Dr. Mitchell Katz, president and CEO of Health + Hospitals, affirmed that Maimonides’ distinct attributes would remain intact, highlighting that all hospitals within the system have their unique identities and commitments to their communities.
“We’ll continue collaborating with our dedicated clinicians and staff to ensure a seamless transition for our patients,” said Katz, who was reappointed to continue leading the city’s hospital system.
A source close to the merger discussions, ongoing for several months, indicated that partnering with the city’s public hospital was Maimonides’ only viable option, as other private hospital systems shied away due to significant deficits.
In May, several trustees of Maimonides even attempted to block the merger through a lawsuit, but ultimately, it was dismissed.
A spokesperson for Maimonides shared, “We have been searching for a partner for 10 years and hadn’t found any other interested parties. We are eager about this collaboration with NYC H+H.”
