BROOKLYN (VINnews) — Boro Park’s Maimonides Medical Center may need to be “saved” even sooner than expected.
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In addition to its allegedly subpar conditions and poor record of treatment, the hospital appears to be on the verge of financial collapse, according to the NY Post.
Financial filings show that the iconic yet beleaguered hospital lost a whopping $145 million last year and defaulted on some debt.
As a result, the facility may not be financially sustainable. At the end of 2021, the hospital had just $148 million in cash on hand, which may only be enough to last another year
The 52-page report, dated Aug. 26 was prepared by renowned accounting firm Price Waterhouse Cooper highlights just how precarious Maimonides’s position is currently.
The news comes as the hospital’s management is engaged in a bitter feud with high-profile businessmen and askanim over the hospital’s future, amid a plethora of complaints over poor care, dilapidated conditions, faulty a/c systems, and excessive executive compensation.
The hospital’s CEO Kenneth Gibbs’ yearly salary nearly doubled from $1.8 million to $3.2 million in 2020 — even though the hospital posted a $16 million loss that year.
In July, five state lawmakers signed a letter calling for hearings into the hospital’s operations.
Then in August, state Senator Simcha Felder labeled the “Save Maimonides” campaign a “not kosher…smear campaign.”
Contributing to the financial predicament of the hospital is the percentage of Medicaid and uninsured patients. The Medicaid reimbursement is far below the varying amounts paid by insurers.
Mismanagement isn’t only to blame..
All hospitals in NYC deal with medicaid patients. It’s just that the poor management and conditions at Maimonidies chased away all the private insurance payers. Save Maimo did the right thing. They are accelerating the inevitable and likely saving lives. There is a need for a hospital there. It will collapse and be bought put by private equity (or another hospital system) who will turn it into a money making machine with better outcomes and service.
Even if the CEO managed things better , it’s hard for a hospital to be sustainable with the high proportion of Medicaid patients and uninsured . Medicaid pays very little, and uninsured obviously pay next to nothing . Wealthy people in the area do not donate to hospitals .
fact check
it seems the article is saying 2020 loss 16 mill & 2021 loss jumped to 145 mill, is that accurate and is this covid stuff
If Miamonides would close, that would be terrible pikuach nefesh situation. Where would Yidden go for emergencies r”l or to give birth? This whole smear campaign does not have a single daas Torah backing it. When all is revealed, it will be one of the biggest and saddest chillul Hashem’s in our long bitter galus history. How a handful of cleanshaven self appointed askanim who made a few dollars can get away with this, is reprehensible. This is all, besides the fact that hundreds of Frum doctors parnasa is made over there.
Let the Yeshiva bidding wars begin.
Hope they closed down for good that’s a butcher shop not a hospital ..
It seems they are trying to do what another Jewish group did to liu hospital the real estate is worth many millions of dollars profit when converted to residential buildings they want the hospital shut and to take the real estate.
Perhaps Northwell will take over the hospital. They have a good record and are large enough to absorb this hospital’s losses until they straighten things out.
Such is by far preferable to a nursing home operator running the hospital.
Let’s say in theory the “askanim” take over and somehow get $300,000,000 to cover the losses and update the facilities with working air conditioners,etc and hire more staff. But then the illegals still use the ER for free medical service, most patients that have some sort of insurance have Medicaid which still pays pennies on the dollar, and there are no millionaire donors constantly donating money to the hospitals. So what will they do then when they need to pay for more staff and continuous upkeep of the building?
I wonder if all the people they asphyxiated, dehydrated and starved to death during COVID had something to do with this?
As noted in an article a few weeks ago in Prime (Hamodia), Gibbs’ salary didn’t double – the implication bring that he received a raise amidst the hospital’s financial woes. Actually, it was part of his contact when he took the position (that these funds would be added to his salary after x number of years). It seems this is common practice for hospital execs.
My two brothers and I were born at that hospital, when it was known as the Israel Zion Hospital. My nephew and niece were also born at Maimonides.
Simcha Felder stated a no kosher smear campaign lol he’s probably part of the corruption follow the money!
This is ofcourse Louis Scheiner propoganda and any of you who go to his shul or support him in any way should be ashaimed of yourself.
David greenfield and eliezer “louis” scheiner are behind this hostile takeover NOT Lshem shamayim
If its already short $148M I don’t get how we can fix it.
Lets see in an ideal world we throw the bums out and get a real ceo who cares. So he renegotiates the debt etc. Now on top of the debt he also needs to invest new money for more nurses and facility upgrades.
To those that want to “save maimondies” , how do you do that without money? Is there a way that someone savy can just get hold of say $300M?