State regulators on Thursday approved New York City’s takeover of the financially ailing Maimonides Medical Center, a decision that faced significant opposition from the local Orthodox Jewish community and other Brooklyn residents.
The merger, initiated under former Mayor Eric Adams and supported by his successor, involves the city’s public hospital system, Health + Hospitals, acquiring the Borough Park facility. Governor Kathy Hochul has committed $2.2 billion over five years to subsidize Maimonides’ deficits, aiming to ensure payroll and continued operations.
Dr. Mitchell Katz, president and CEO of Health + Hospitals, stated during a hearing in Albany that the city's goal is to support, not change, Maimonides. As part of the agreement, Health + Hospitals committed to maintaining kosher meals and respecting other religious customs for the hospital, which has deep historical ties to the Jewish community.
"We're not here to change Maimonides. We're here to support Maimonides," Katz said.
Despite these assurances, some community members and elected officials voiced strong objections. Assemblyman Simcha Eichenstein, a Democrat representing Brooklyn, called the takeover a "desperate move" that would create more problems than it solves. Members of the local religious community expressed concern that city officials’ promises could be broken over time, noting that "administrations come and go but the sale is forever."
Maimonides, an 81-year-old private, not-for-profit hospital, serves a diverse population including significant Chinese, Latino, and Jewish communities in neighborhoods like Bensonhurst, Sunset Park, and Borough Park. A high percentage of its patients rely on Medicaid.
Katz argued that as a public hospital, Maimonides would be better positioned to collect higher Medicaid reimbursement rates and would gain access to resources for crucial upgrades, such as its antiquated computer system. He also confirmed the commitment to a kosher kitchen and Jewish end-of-life care.
The state Public Health and Health Planning Committee unanimously approved the merger. One committee member noted that it was the only viable proposal presented to save the 711-bed hospital, as other private hospital systems had reportedly shied away due to Maimonides’ steep operating deficits.
Legal challenges remain, with two lawsuits pending to block the merger. Martin Bienstock, a lawyer representing the Coalition to Preserve Maimonides, stated that their legal fight is ongoing and additional court approval is still needed. He described the deal as potentially undermining community health.
Maimonides Medical Center was named after the 12th-century Rabbi Moshe Ben Maimon, an advocate for medical training. Health + Hospitals currently operates 11 hospitals, 29 medical clinics, and five long-term care facilities across New York City.
Representatives from industry groups like the Health Care Association of New York State and the Greater New York Hospital Association, along with Maimonides staff from the Nurses’ Association and Local 1199 SEIU Health Care East, testified in support of the merger.