Oversight - Impacts of the Maimonides Health System and NYCH+H Merger.

The New York City Council Committee on Hospitals is holding an oversight hearing on the proposed merger between Maimonides Health System and NYC Health + Hospitals (NYCH+H). This merger, announced on December 29, 2025, aims to integrate Maimonides into the public hospital system while it retains its identity as a Brooklyn-based institution. A key component of this plan is a $2.2 billion state grant over five years, intended to stabilize operations, fund capital improvements, and bolster safety-net care in Brooklyn. Officials emphasize the merger will protect access to care for Medicaid and uninsured residents and allow Maimonides to benefit from higher Medicaid reimbursement rates through NYCH+H.

Background on Maimonides:

• Founded in 1911, it's Brooklyn's largest independent health network, serving over one million patient visits annually across three hospitals and 80+ practices.
• It is a critical safety-net provider for central and southern Brooklyn, known for its emergency department, cardiac surgery, maternity, trauma, and behavioral health services.
• In 2024, Maimonides recorded over 40,000 inpatient discharges, 148,000 emergency department visits, and nearly 966,000 outpatient visits.
• Its flagship, Maimonides Medical Center, is a 711-bed teaching hospital and Brooklyn's largest Medicaid provider.

Financial Context:

• Maimonides has faced significant fiscal pressures, reporting an approximate $15 million operating loss in the first three quarters of 2025, despite over $180 million in government relief.
• Over 80% of its inpatient population is covered by Medicaid or Medicare, which often reimburse below the cost of care.
• Rising operational costs, including a 7.5% increase in employee wages and a 7% rise in supply costs in 2025, have intensified financial strain.

Key Issues and Concerns:

• Service Reductions and Quality of Care: While continuity of care is emphasized, questions remain about the transition timeline, staffing, potential service reductions, and patient record access.
• Cultural Sensitivity: Maimonides is praised for its culturally sensitive care to diverse populations (Orthodox Jewish, Chinese, Latino, Russian, Caribbean, South Asian). Concerns exist that the merger might erode this quality of care.
• Legal Challenges: Seven members of the Maimonides Board of Trustees have sued to block the merger, citing insufficient consideration of alternative affiliations and rushed voting procedures. A court date is set for April 14, 2026.
• Federal Funding Impacts: Recent federal legislation (H.R. 1) introduces stricter Medicaid eligibility checks, work requirements, penalties for covering undocumented immigrants, and cuts to the Medicaid DSH program, creating uncertainty for NYCH+H's financial health.

The merger is expected to be completed by April 2026, pending regulatory approval. Svetlana Lipyanskaya is slated to become CEO of the newly partnered Maimonides Health.