By Y.M. Lowy

The head of NYC Health+Hospitals told the City Council this week that the city’s pending acquisition of Maimonides Health is not a takeover and that much of the hospital’s day-to-day operations will remain the same, at least in the beginning. 

At an oversight hearing, CEO Dr. Mitchell Katz said the goal of the merger is to stabilize Maimonides’ finances and improve patient care, not to change its identity. Maimonides has faced significant budget deficits in recent years and had been searching for a partner after a proposed merger with Northwell Health fell through.

Joining NYC Health+Hospitals will allow Maimonides to receive higher reimbursement rates for Medicaid patients. Because about 80 percent of Maimonides’ patients are covered by Medicaid or Medicare, those higher rates are expected to bring in up to $9 million more per month.

The merger will also be supported by a $2.2 billion, five-year state grant. That includes $200 million in loan forgiveness, $500 million for capital improvements, and $1.5 billion to support hospital operations as it works to eliminate its deficit.

Some upgrades are already being planned, including improvements to the maternity ward, where about 6,000 babies are delivered each year. He also said Maimonides will gain access to the EPIC digital record system and the MyChart patient portal, replacing what he described as multiple outdated record systems currently in use.

Addressing concerns from the heimish Boro Park community, Katz said the system intends to respect the traditions that have shaped Maimonides. He also said existing union agreements with 1199SEIU, the Committee of Interns and Residents, and the New York State Nurses Association will be honored.

A lawsuit filed by some members of Maimonides’ Board of Trustees is seeking to block the merger, but Katz said there is no court order preventing the deal from moving forward. Officials expect the merger to be finalized by April 1.

While some leadership changes may happen once the agreement is complete, most daily operations at the hospital are expected to continue as usual in the near term.