Posted on 09/07/22
| News Source: NY Post
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.