New York City-based Maimonides Health warned in a May 14 financial filing that there is substantial doubt about its ability to continue operating within the next year amid ongoing financial pressures.
“The medical center’s expenses continue to grow due to the ongoing financial impact of inflation and other financial pressures,” Maimonides said in its filing. “At the same time, we lost federal COVID funding and continued to receive inadequate reimbursements due to the inequitable rates for the 86% of our patients covered by Medicaid and Medicare.”
Maimonides saw an operating improvement in 2025, reporting an operating income of $31.8 million (1.4% operating margin), up from an operating loss of $80.6 million (-4% margin) in 2024. Despite the improvement, the hospital’s management has determined that its current financial condition and liquidity sources — including current funds available and forecast future cash flows — along with obligations due on or before May 1, 2027, raise “substantial doubt regarding the medical center’s ability to continue as a going concern within one year after the date these consolidated financial statements are issued.”
Maimonides announced plans in late 2025 to join New York City’s public health system, NYC Health + Hospitals. That deal, however, has stalled amid legal challenges. In New York, any proposed nonprofit hospital merger requires approval from either the state Attorney General’s Office or the state Supreme Court, according to an April 1 report from Gothamist. The attorney general’s office determined that a court review would be more appropriate for the merger because of the ongoing legal challenges.
The deal is facing a lawsuit filed by a group of Maimonides board members; they allege the hospital would provide worse quality care and would be less equipped to serve Jewish patients, according to the report. A coalition of Jewish organizations and leaders also sued the state health commissioner, alleging he allowed the proposed deal to bypass key steps in the regulatory process that would have provided a closer look at the merger’s potential effects on the community.
Under the proposed agreement, Maimonides would receive up to $2.2 billion over five years through a state grant.
A Maimonides spokesperson told Gothamist the hospital remains confident the transaction will ultimately be approved.
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