BREAKING: State Rejects Maimonides-H+H Takeover Application

The proposed takeover of Maimonides Medical Center by NYC Health + Hospitals has suffered another major setback.

According to sources familiar with the matter, the New York State Department of Health has rejected Maimonides' latest application seeking approval for the transaction after discovering that the hospital failed to submit a required Health Equity Impact Assessment (HEIA).

The development came as hospital officials were awaiting consideration of the proposal by the Public Health and Health Planning Council's Establishment and Project Review Committee. However, when the committee's June 10 agenda was released, the Maimonides takeover was nowhere to be found.

The rejection follows a significant court defeat for Maimonides and H+H last month.

On May 12, Albany Supreme Court Justice Denise Hartman struck down the Department of Health's previous approval of the $2.245 billion transaction, ruling that state regulators improperly allowed the deal to proceed without the full review process required by law.

The lawsuit was brought by Refuah Helpline, several Borough Park kehillos, and local residents who argued that the transaction could have a significant impact on healthcare services relied upon by Brooklyn communities.

At the center of the latest controversy is the Health Equity Impact Assessment requirement, a state law enacted in 2023 that mandates an independent review of major healthcare transactions. The assessment is intended to examine how a proposed transaction could affect access to care, health disparities, and medically underserved populations.

Critics of the deal argue that such a review is especially important given Maimonides' role as a critical healthcare provider for hundreds of thousands of patients across Brooklyn, including the large Orthodox Jewish population of Borough Park and surrounding neighborhoods.

Maimonides serves a predominantly Medicare and Medicaid patient population and operates Brooklyn's only comprehensive children's hospital and Pediatric Trauma Center.

Legal representatives for the community petitioners say the court's ruling made clear that the takeover cannot legally proceed without a completed HEIA and full Public Health Council review.

The delay could push the transaction back for months. The Establishment Committee is not scheduled to meet again until August 27, and healthcare experts note that preparing a comprehensive, independently conducted health-equity study can be a lengthy process requiring extensive public input and analysis.

The takeover is also facing challenges on multiple other fronts.

A lawsuit filed by seven Maimonides trustees remains active in Kings County Supreme Court, alleging that hospital leadership failed to properly explore alternatives before pursuing the sale.

In addition, the New York Attorney General's Charities Bureau has declined to approve the transfer of Maimonides' nonprofit assets without court review, creating another significant hurdle for the transaction.

The deal was originally expected to close on April 1, 2026, a date repeatedly cited by both Maimonides and H+H leadership. More than two months later, the proposed takeover remains tied up in litigation, regulatory reviews, and mounting uncertainty.

As of publication, neither Maimonides Medical Center nor NYC Health + Hospitals has announced a new target date for completing the transaction.

BoroPark24 will continue to update the community as the situation unfolds.