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State Panel Advances $2.2 Billion Plan to Fold Maimonides Into City Hospital System

The move aims to stabilize Maimonides by unlocking a $2.245 billion state grant to raise Medicaid payments and fund technology and capital upgrades.

Overview

  • A New York State health review committee voted to advance the affiliation on Thursday, Aug. 27, 2026, sending the proposal to a Sept. 17 full Public Health Council vote.
  • The committee’s approval is conditional on documentation of a $2.245 billion Safety Net Transformation Program grant and other requirements before the transfer can proceed.
  • Even with council approval the asset transfer is not final because at least two active lawsuits and separate court review of the nonprofit sale could block or delay the deal and Maimonides remains independent.
  • City and state officials say the affiliation would let NYC Health + Hospitals collect higher Medicaid reimbursements, install a new electronic health record and provide operating and capital support while keeping the hospital name and kosher services, but opponents warn such promises may not be durable and a community coalition submitted more than 34,000 signatures seeking independent review.
  • Maimonides is Brooklyn’s largest independent system and operates the borough’s only children’s hospital and pediatric trauma center, and supporters say the rescue could preserve those services and jobs while critics fear loss of local control and long-term cultural protections.