One of many greatest hospitals in Brooklyn, Maimonides Medical Middle, is at risk of collapse after posting a lack of $145 million final 12 months and defaulting on a few of its debt obligations, annual monetary filings obtained by The Submit present.
The filings present that the sprawling hospital — so massive, its complicated spans two neighborhoods — ended 2021 with simply $148 million in money available, sufficient to final simply one other 12 months if the present fee of losses endures.
The hospital’s monetary situation is so precarious that its unbiased annual monetary report, ready by unbiased auditors and obtained by The Submit, warned “these circumstances increase substantial doubt concerning the Medical Middle’s capability to proceed as a going concern inside one 12 months after the date these consolidated monetary statements are issued.”
“The Medical Middle’s outcomes of operations have been negatively impacted by the persistent stress of healthcare cost reforms enacted in recent times in addition to altering patterns of healthcare utilization and the COVID-19 pandemic,” the report states.
“This difficult working atmosphere has had a detrimental impact on each the inpatient and outpatient segments and its suppliers, leading to losses from operations, money outflows from operations, and violations of monetary debt covenants.”
The auditors discovered that the hospital managed to barter new preparations for these loans to keep away from formally defaulting on its money owed, however the 52-page report dated Aug. 26 from accounting agency Value Waterhouse Cooper highlights simply how precarious Maimonides’s place is at present.
The torrent of purple ink comes because the hospital’s administration and southern Brooklyn energy brokers are engaged in a bitter feud over the complicated’s future amid mounting complaints about poor care, dilapidated circumstances and extreme government compensation.
The hospital’s prime boss, CEO Kenneth Gibbs, noticed his compensation almost double in only one 12 months, from $1.8 million to $3.2 million in 2020 — even because the monetary report obtained by The Submit exhibits the hospital posted a general $16 million loss for the 12 months.
Complaints about care on the establishment then exploded into view in July when 5 state lawmakers signed onto a letter calling for hearings into the hospital’s operations, citing lengthy wait occasions for care and overwhelmed employees.
The battle took one other twist in August when a type of lawmakers, state Sen. Simcha Felder (D-Brooklyn), labeled one of many teams campaigning to overtake the hospital’s administration — Save Maimonides — as “not kosher.”
“The motion just isn’t kosher. It’s completely a smear marketing campaign,” Felder stated, whose district is closely Orthodox and wherein Maimonides is a significant employer.
Allies of the hospital’s present administration have additionally accused its critics of trying to take over the hospital.
The most important critics’ group, Save Maimonides, in flip accused Felder of bowing to stress from the hospital’s trustees and administration, who’ve donated to his campaigns.
“This revelation by certainly one of America’s prime accounting companies that Maimonides is on the verge of chapter is stunning however not stunning contemplating the over 2,000 complaints we’ve acquired,” stated Mendy Reiner, who co-chairs the coalition.
“New York State should intervene to avoid wasting this important hospital,” he continued.
Reiner stated state officers ought to put Northwell Well being — one of many state’s largest hospital networks, which relies on Lengthy Island — accountable for managing Maimonides.
The 2 entities have already got a partnership, however the relationship is restricted in scope and the 2 stay unbiased of one another.
Maimonides is ‘security web’ hospital — that means most of its sufferers are both uninsured or depend on Medicaid, which pays far lower than personal insurance coverage for procedures, that means the hospital runs on slim margins in the perfect of occasions.
That’s compounded by its standing as certainly one of New York Metropolis’s final remaining main hospitals not owned or tightly built-in into a significant system, like NYU-Langone or Columbia-Presbyterian.
Meaning it alone carries the prices of main again workplace operations like billing and operating its pc and data techniques.
A spokesman for Maimonides stated that the speed of losses had slowed this 12 months and that hospital executives have been hopeful that monies Albany lawmakers put aside to assist struggling hospitals would assist shut the hole.
“Luckily, the State’s management has acknowledged this downside and made Maimonides eligible to obtain enhanced Medicaid reimbursements that may assist to mitigate the historic deficiency in Medicaid funding,” stated a spokesman.
Maimonides just isn’t alone in its struggles.
Staten Island’s financially troubled Richmond College Medical Middle recently rejected a plan to hyperlink it with the Massive Apple’s public hospital system as a means to put it aside an estimated $50 million yearly.
One other Brooklyn hospital, Interfaith Medical Middle in BedStuy, was recently consolidated into two different struggling outer-borough hospitals — collectively now often called One Brooklyn Well being — as a part of a state plan to attempt to shore up the borough’s healthcare system by slashing prices and chopping some beds.
It’s a minimum of the third time within the final 5 many years that Interfaith has been rescued by state officers.
Interfaith was initially a system of two hospitals — St. John’s Episcopal Hospital, the survivor; and Brooklyn Jewish Hospital — which have been merged collectively in 1982 a bid to fix the failing finances at both establishments.