Maimonides Medical Center to Merge with NYC Health+Hospitals in Landmark Deal
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A transformative merger between Maimonides Medical Center and NYC Health+Hospitals is set to reshape the healthcare landscape of Brooklyn, officials announced Monday. The agreement, expected to be finalized by April 1, 2026, will integrate the financially-challenged, private safety-net hospital into New York City’s public healthcare system.
A Lifeline for Maimonides
The merger is positioned as a critical step to stabilize Maimonides, which has faced significant financial headwinds in recent years. According to reports from Crain’s, the hospital experienced a staggering $15 billion loss in the first three quarters of 2025, generating only $1.5 million in revenue. This precarious financial situation prompted the search for a sustainable solution, ultimately leading to the agreement with NYC Health+Hospitals.
“By bringing two storied health care systems together under one umbrella, we will ensure that Brooklynites, and all New Yorkers, can continue to receive the high-quality care that they deserve,” Mayor Eric Adams stated. The move is expected to provide Maimonides with access to higher Medicaid reimbursement rates, reserved for public hospitals, potentially generating “millions of dollars” in additional revenue annually.
The Role of Safety-Net Hospitals and Medicaid
Maimonides operates as a safety-net hospital, serving a patient population where over 80% are insured by Medicare and Medicaid. These government-funded programs often do not fully cover the cost of care, placing a substantial financial burden on hospitals that serve a high proportion of these patients. The looming threat of federal Medicaid cuts further exacerbates these challenges, making the merger with NYC Health+Hospitals a vital lifeline.
A $2.2 Billion Investment and Continued Care
The merger will be bolstered by a $2.2 billion, five-year grant from New York State, demonstrating a significant commitment to ensuring the continuity of care for Brooklyn residents. Officials have assured the public that patient care will “continue uninterrupted during the transition.” Dr. Mitchell Katz, CEO of Health+Hospitals, emphasized that the Borough Park-based Maimonides, which serves a large Orthodox Jewish population, will “retain its unique character and commitment to the communities it serves.”
Modernizing Infrastructure with Epic
The integration will also facilitate the adoption of Epic, a leading electronic health record platform, across Maimonides. City Hall anticipates that this will improve care coordination and empower patients with greater access to their medical records and communication channels with their providers.
Legal Challenges and Board Disputes
The path to this merger has not been without obstacles. In November, seven members of Maimonides’ Board of Trustees initiated legal action, attempting to block a vote on the merger following the Health+Hospitals board’s unanimous approval. The Trustees alleged the merger was politically motivated, potentially compromising the quality of care, and that hospital leadership had disregarded alternative offers. They also raised concerns about the future employment status of Maimonides physicians under the new structure and insufficient time for board review of the deal, which they initially estimated to be worth $15 billion.
However, a temporary restraining order issued to prevent the vote was swiftly overturned by an appellate court, and the Board of Trustees subsequently approved the agreement. City attorneys dismissed the Trustees’ claims of political influence as “baseless” and “based entirely on speculative allegations,” and Health+Hospitals clarified that the deal includes provisions to establish a Professional Corporation for Maimonides’ physicians.
Looking Ahead
The merger represents a significant shift in the New York City healthcare landscape, aiming to strengthen access to care and ensure the financial stability of a vital community hospital. As the deal progresses toward its April 2026 completion date, stakeholders will be closely watching to ensure a seamless transition and the realization of its promised benefits for patients and the broader Brooklyn community. This is a developing story and will be updated as more information becomes available.
