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One of the biggest hospitals in Brooklyn, Maimonides Medical Center, is in danger of collapse after posting a loss of $145 million last year and defaulting on some of its debt obligations, annual financial filings obtained by The Post show.

The filings show that the sprawling hospital — so large, its complex spans two neighborhoods — ended 2021 with just $148 million in cash on hand, enough to last just another year if the current rate of losses endures.

The hospital’s financial condition is so precarious that its independent annual financial report, prepared by independent auditors and obtained by The Post, warned “these conditions raise substantial doubt regarding the Medical Center’s ability to continue as a going concern within one year after the date these consolidated financial statements are issued.”

“The Medical Center’s results of operations have been negatively impacted by the persistent pressure of healthcare payment reforms enacted in recent years as well as changing patterns of healthcare utilization and the COVID-19 pandemic,” the report states.

“This challenging operating environment has had a detrimental effect on both the inpatient and outpatient segments and its providers, resulting in losses from operations, cash outflows from operations, and violations of financial debt covenants.”

The auditors found that the hospital managed to negotiate new arrangements for those loans to avoid formally defaulting on its debts, but the 52-page report dated Aug. 26 from accounting firm Price Waterhouse Cooper highlights just how precarious Maimonides’s position is currently.


  Lawmaker Simcha Felder joined other politicians in signing a letter to the Maimonides CEO. Hans Pennink Lawmaker Simcha Felder joined other politicians in signing a letter to the Maimonides CEO. Hans Pennink

The torrent of red ink comes as the hospital’s management and southern Brooklyn power brokers are engaged in a bitter feud over the complex’s future amid mounting complaints about poor care, dilapidated conditions and excessive executive compensation.

The hospital’s top boss, CEO Kenneth Gibbs, saw his compensation nearly double in just one year, from $1.8 million to $3.2 million in 2020 — even as the financial report obtained by The Post shows the hospital posted a overall $16 million loss for the year.

Complaints about care at the institution then exploded into view in July when five state lawmakers signed onto a letter calling for hearings into the hospital’s operations, citing long wait times for care and overwhelmed staff.

The battle took another twist in August when one of those lawmakers, state Sen. Simcha Felder (D-Brooklyn), labeled one of the groups campaigning to overhaul the hospital’s management — Save Maimonides — as “not kosher.”

“The movement is not kosher. It’s absolutely a smear campaign,” Felder said, whose district is heavily Orthodox and in which Maimonides is a major employer.

Allies of the hospital’s current management have also accused its critics of attempting to take over the hospital.

The major critics’ group, Save Maimonides, in turn accused Felder of bowing to pressure from the hospital’s trustees and management, who have donated to his campaigns.

“This revelation by one of America’s top accounting firms that Maimonides is on the verge of bankruptcy is shocking but not surprising considering the over 2,000 complaints we’ve received,” said Mendy Reiner, who co-chairs the coalition.

“New York State must intervene to save this crucial hospital,” he continued.

Reiner said state officials should put Northwell Health — one of the state’s largest hospital networks, which is based on Long Island — in charge of managing Maimonides.

The two entities already have a partnership, but the relationship is limited in scope and the two remain independent of each other.

Maimonides is ‘safety net’ hospital — meaning most of its patients are either uninsured or rely on Medicaid, which pays far less than private insurance for procedures, meaning the hospital runs on narrow margins in the best of times.

That is compounded by its status as one of New York City’s last remaining major hospitals not owned or tightly integrated into a major system, like NYU-Langone or Columbia-Presbyterian.

That means it alone carries the costs of major back office operations like billing and running its computer and records systems.

A spokesman for Maimonides said that the rate of losses had slowed this year and that hospital executives were hopeful that monies Albany lawmakers set aside to help struggling hospitals would help close the gap.


  One of the biggest hospitals in Brooklyn, Maimonides Medical Center, is in danger of failing after posting a loss of $145 million last year. Paul Martinka One of the biggest hospitals in Brooklyn, Maimonides Medical Center, is in danger of failing after posting a loss of $145 million last year. Paul Martinka

“Fortunately, the State’s leadership has recognized this problem and made Maimonides eligible to receive enhanced Medicaid reimbursements that will help to mitigate the historical deficiency in Medicaid funding,” said a spokesman.

Maimonides is not alone in its struggles.

Staten Island’s financially troubled Richmond University Medical Center recently rejected a plan to link it with the Big Apple’s public hospital system as a way to save it an estimated $50 million annually.

Another Brooklyn hospital, Interfaith Medical Center in BedStuy, was recently consolidated into two other struggling outer-borough hospitals — collectively now known as One Brooklyn Health — as part of a state plan to try to shore up the borough’s healthcare system by slashing costs and cutting some beds.

It’s at least the third time in the last five decades that Interfaith has been rescued by state officials.

The hospital navigated and emerged from bankruptcy in 2014 with a state-mandated management team and an infusion of funding.

Interfaith was originally a system of two hospitals — St. John’s Episcopal Hospital, the survivor; and Brooklyn Jewish Hospital — which were merged together in 1982 a bid to fix the failing finances at both institutions.

By 1989, Interfaith was broke again and block-sized Brooklyn Jewish Hospital was eventually shut down and converted into massive affordable housing complex.

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