Maimonides Medical Center in Brooklyn is currently in the process of merging with the New York City Health + Hospitals system (NYC H+H) in hopes of finalizing an agreement in the coming months to alleviate long-standing financial pressures.
Spokesperson Tina Lee from Maimonides Medical Center stated that substantial steps have been taken in recent weeks to advance the merger negotiations with the goal of reaching an agreement within the next few months to integrate Maimonides into the city’s public hospital system.
New York City Health + Hospitals is the largest public healthcare system in the United States, serving individuals regardless of immigration status or ability to pay. If the deal goes through, Maimonides could benefit from the higher Medicaid reimbursement standards offered by public hospitals, leading to a potential annual revenue increase in the millions of dollars. Additionally, according to New York State Governor Kathy Hochul’s “Healthcare Transformation Plan” unveiled in October, the hospital is expected to receive up to $2.2 billion in state government subsidies over the next five years.
Last month, the board of directors of New York City Health + Hospitals unanimously approved a resolution authorizing formal negotiations with Maimonides, while the Maimonides board of directors voted on December 3rd to approve the merger proposal, setting the stage for further discussions.
Maimonides Medical Center has stated that they will continue to engage in discussions with New York City Health + Hospitals and other relevant stakeholders, aiming to finalize the ultimate agreement within the next few months. Should the merger be completed, this case would be one of the significant consolidation examples in recent years within New York City’s public healthcare system, highlighting the structural adjustments that hospitals are facing amidst financial pressures and policy changes.