Trustees of Maimonides hospital sue to block NYC takeover

Trustees of the financiallys truggling Maimonides Hospital, located in heavily orthodox Jewish south Brooklyn, filed a lawsuit early this week to stop a government takeover of the 80-year-old medical facility.
Maimonides’ leadership plans to merge with the city’s public hospital system — Health + Hospitals — converting the private, independent hospital into a city-run facility overseen by a board and president/CEO appointed by the mayor.
A part of the merger, Maimonides would receive a desperately needed $2.2 billion over five years through a state grant, according to a spokesperson for the cash-strapped hospital.
But trustees of the medical center and nearby Borough Park residents, particularly Jewish locals, fear the level of care at a public Maimonides — named after 12th-century Rabbi Moshe Ben Maimon, an advocate for medical training — would drastically decline.
Maimonides trustees Aaron Twerski, Peter Rebenwurzel, George Weinberger, Chaim Fisher, Yehoshua Leib Leib Fruchthandler, Marty Waisbrod and David Spira argued in the suit filed Sunday that the sale to Health+Hospitals would violate the board’s fiduciary duty to act in the best interests of Maimonides.
Their complaint also claimed H+H’s Brooklyn-based hospitals are consistently ranked among the
lowest in New York State, raising profound concerns about the quality of care that could result
from converting Maimonides into a public hospital.
In addition, the lawsuit also claimed other proposals were not seriously considered, including those from Touro College and Westchester Medical Center.
A Brooklyn lawmaker who defended the hospital when its patient care came under attack three years ago said he was furious and walked out of a meeting when Maimonides executives pushed the city takeover of the hospital.
“I was born at Maimonides,” said Councilman Simcha Felder.
“What they’re doing is outrageous.”
“They are destroying a hospital that has existed for many years.”
For now, the city takeover of the private hospital is on hold after Brooklyn state Supreme Court Judge Aaron Maslow issued a temporary restraining order blocking any sale pending a hearing in January.
“We are grateful that the Court has paused this rushed attempt to sell Maimonides and convert it into a public hospital,” the plaintiffs said.
“We look forward to a thoughtful, transparent, and well-supported process that truly considers what is best for Maimonides and the patients who rely on it.”
Maimonides is considered a safety net hospital, meaning it provides medical care regardless of patients’ ability to pay. It’s heavily reliant on Medicaid and state subsidies to serve a large indigent caseload to stay afloat.
As a result, the hospital’s financial situation is dire as it has been hemorrhaging hundreds of millions of dollars a year.
Other similar, mid-sized, independent hospitals that haven’t closed linked up with larger private hospital systems, such as Presbyterian or NYU Langone, to remain viable.
The city’s former Catholic hospitals, such as St. Vincent’s in Manhattan, shuttered years ago.
Long Island College Hospital in Brownstone Brooklyn closed a decade ago.
Maimonides management on Tuesday defended its plan to join Health + Hospitals to put the medical facility on sounder financial footing.
“For more than a decade, our board has directed us to explore partnerships with other health systems to expand our capacity to deliver high-quality care, meet the growing needs of our communities and strengthen our financial position, which is hampered by our status as a safety net hospital,” said Maimonides spokesman Sam Miller.
“Over the last several months, Maimonides has engaged in discussions with the leadership of New York City Health + Hospitals to join their system. If an agreement is reached, Maimonides would receive up to $2.2 billion over five years in a State grant announced last month and higher Medicaid reimbursements, which are increasingly important at a time when federal cuts threaten to reduce overall support for safety net hospitals.”
Maimonides remains optimistic that “continued discussions with H+H and our stakeholders will result in an agreement that grows our current clinical collaboration and ensures expanded access to the award-winning, culturally responsive specialty care that our patients and communities deserve and have come to expect.”