One of the major health care providers in Brooklyn, Maimonides Health, said on Monday that it is becoming part of New York City’s public health system, in a deal that it said would improve its shaky finances and safeguard access to hospitals and clinics for the city’s most populous borough.
The arrangement, which requires legal and regulatory approval, was announced in a joint statement by leaders of Maimonides Health, NYC Health + Hospitals and Mayor Eric Adams, who leaves office in three days.
“This effort preserves and strengthens care in my home borough of Brooklyn, and will be great for the thousands of patients who use Maimonides every day,” Mr. Adams said in a statement.
Randy Mastro, the first deputy mayor, described the deal as “a ‘win-win’ scenario for all.”
“We are proud to be part of the solution that preserves this cherished Brooklyn community hospital and welcomes it as an affiliate of our own public network of hospitals,” he said.
The partnership between Maimonides and NYC Health + Hospitals had been expected for several months and was endorsed by Gov. Kathy Hochul in October when she unveiled a program to support safety-net providers across the state. Safety-net providers typically have a large share of patients who are on government health plans or who are uninsured.
On Monday, city officials said the partnership was expected to become final before April 1.
Maimonides was founded by Jewish philanthropists more than a century ago and is named for a 12th-century Jewish philosopher. It has long played a critical role in the Orthodox Jewish community and is a neighborhood landmark in Borough Park, which is one of the city’s primary centers of Orthodox Jewish life.
Maimonides operates three hospitals and more than 80 other sites, and its facilities mostly treat people who have Medicare or Medicaid, the government health plans that cover millions of patients in New York City. Those programs reimburse providers only 60 cents on the dollar compared with most commercial insurance, leaving Maimonides with a persistent financial shortfall.
Maimonides has lost tens of millions of dollars annually in recent years. And in 2021, during the second year of the pandemic, its expenses outran revenue by more than $165 million, according to tax filings.
Maimonides provides outpatient treatment to roughly 600,000 people each year and inpatient treatment to 35,000, according to the Healthcare Association of New York State, an industry group.
It said Maimonides receives roughly 70 percent of its patient revenue from Medicare and Medicaid patients, who make up more than 80 percent of those who are admitted and more than 70 percent of those who receive outpatient care.
Mr. Adams and the leaders of both health care systems said the partnership will benefit Maimonides Health in two significant ways. It will allow its facilities to be reimbursed at a higher rate paid to the city by Medicaid, which will bolster the system’s long-suffering financial position.
And it will also allow Maimonides to use the city’s electronic health record platform, which could be a boon to a hospital system that for years has suffered from poor rankings for patient satisfaction.
Officials said the partnership was made possible by the program Ms. Hochul announced this year, and also by the improved financial position of NYC Health + Hospitals. Its revenue from direct patient care has grown since 2019 by more than $2.5 billion, to more than $5.7 billion, they said. And the number of patients treated by the system has grown by roughly 43,000 since 2018.
Liam Stack is a Times reporter who covers the culture and politics of the New York City region.
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