Maimonides–H+H Takeover Faces Fresh Roadblock as State Rejects Application Over Missing Review
The proposed $2.245 billion takeover of Maimonides Medical Center by NYC Health + Hospitals has encountered another major setback after the New York State Department of Health reportedly rejected Maimonides’ latest application because it did not include a required Health Equity Impact Assessment (HEIA).
The rejection became apparent after hospital officials anticipated the proposal would appear on the June 10 agenda of the Establishment and Project Review Committee, the state body responsible for reviewing major healthcare transactions.
When the agenda was released, however, the Maimonides transaction was absent.
The latest development follows a significant legal defeat for the hospital. On May 12, 2026, Albany Supreme Court Justice Denise Hartman overturned the Department of Health’s earlier approval of the deal, ruling that it was “arbitrary and capricious” and violated state law.
The court held that the transaction could not proceed without full review and approval by the Public Health and Health Planning Council.
The lawsuit was brought by community organizations and residents, including Refuah Helpline and several Borough Park kehillos, who argued that the takeover could have major consequences for healthcare access in Brooklyn.
Under a 2023 New York law, an independent Health Equity Impact Assessment is required for major hospital transactions, including ownership changes and acquisitions.
The review is intended to evaluate how a transaction could affect access to care, health equity, health disparities, and medically underserved communities.
Opponents of the deal argue the assessment is particularly important because Maimonides serves a large and diverse patient population, including the frum Jewish communities of Borough Park and surrounding neighborhoods, as well as Arab, Chinese, Latino, Russian, Caribbean, and South and Southeast Asian residents.
Approximately 85% of the hospital’s patients are covered by Medicare or Medicaid, and Maimonides operates Brooklyn’s only comprehensive children’s hospital and Pediatric Trauma Center.
Attorneys representing community groups warned state officials in a June 2 letter that approving the transaction without a completed HEIA would be unlawful and could render any approval invalid.
They argued that the Albany court’s ruling independently triggers the requirement for the assessment.
The delay is expected to further push back the transaction, which was originally slated to close on April 1, 2026.
The next meeting of the Establishment Committee is not scheduled until August 27, raising questions about whether Maimonides can complete the required independent study and public engagement process in time.
The takeover also remains under pressure from other legal challenges, including an ongoing lawsuit by seven Maimonides trustees who allege hospital leadership breached its fiduciary duties by pursuing the transaction without adequately exploring alternatives.
In addition, the New York Attorney General’s Charities Bureau declined to approve the transfer of Maimonides’ nonprofit assets directly and instead referred the matter for full court review.
With regulatory hurdles mounting and multiple legal battles continuing, the future timeline of the proposed Maimonides–NYC Health + Hospitals merger remains uncertain.
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