Maimonides is on the Verge of Bankruptcy After Years of Mismanagement

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Following years of mismanagement and dysfunction, Maimonides Medical Center in Brooklyn is on the verge of bankruptcy and may be forced to shut its doors by the end of this year due to a self-inflicted fiscal crisis that has spiraled out of control, according to the New York Post and new financials reviewed by YWN.

According to an independent audit conducted by well-known accounting firm Price Waterhouse Cooper, Maimonides lost a whopping $145 million in 2021. The New York Post, which first reported this story, stated that the annual audit also noted that Maimonides defaulted on a portion of its debt obligations, leaving the hospital teetering on the brink of financial ruin. According to the audit, the hospital came into this year with only $148 million in cash on hand, which is just enough funds for Maimonides to keep its doors open for only one more year if it continues losing money at this record pace.

The hospital’s tenuous financial situation comes as no surprise to community members that have been monitoring Maimonides’ reckless actions over the past several years, which have led to a deterioration of care and a depleted nursing team that is not given the resources it needs to properly address patients’ needs. The terrible state of affairs at Maimonides is underscored by the fact that the hospital received only a 1-star rating out of 5 in a recent federal government report card measuring patient satisfaction and just 2 out of 5 stars for overall care. Maimonides is literally ranked the worst hospital in New York State- ranked 157th out of 157 hospitals by the Department of Health.

The current budgetary crisis is largely due to negligence on the part of the hospital’s top executives, led by embattled CEO Ken Gibbs, who has demonstrated an utter disregard for improving the level of care at Maimonides, instead choosing to give themselves excessive raises. While the hospital was hemorrhaging funds, Maimonides CEO Ken Gibbs’ compensation jumped from $1.8 million to $3.2 million in 2020, even as the hospital lost $16 million that year. To make matters worse, at the same time, five other top Maimonides executives received exorbitant salaries totaling nearly $11 million.

“While the hospital is running out of money, patient care is suffering, and nursing staffing levels are dangerously low, Maimonides executives thumb their noses at the public by taking home outrageous salaries and bonuses,” said Mendy Reiner, co-chair of Save Maimonides, a grassroots coalition that has been working to spotlight the issues at Maimonides, demand accountability, and bring about the changes that the patients and hospital staff need and deserve. “The current situation at Maimonides is untenable, and with bankruptcy looming on the horizon, it is critical that the state get involved and take steps to save this crucial community hospital.”

Stories abound of patient neglect at Maimonides, and the tragic ramifications of the hospital’s top executives’ selfish and irresponsible decision to look out for themselves rather than invest in improving the quality of care, are evident. Reiner noted that Save Maimonides has received more than 2,000 complaints about Maimonides, many of which are absolutely heart-wrenching.

(YWN World Headquarters – NYC)

7 COMMENTS

  1. Is this an opinion piece or a news article? All these facts and allegations may be true but perhaps should not be presented as a news article. Or worded differently.

  2. The state Attorney General could begin an action to remove the Board of Directors for failing in their duties as managers of a charitable institution, and the assets could be transferred to new Board, along with bankruptcy proceedings to get rid of the debts.