Maimonides’ 2015 Financial Improvement

Crain's Health Pulse
May 4, 2016
Maimonides’ 2015 Financial Improvement
Maimonides Medical Center earned $7.1 million in operating income last year, reversing a $6.9 million loss in 2014 by limiting costs amid moderate revenue growth. Results were boosted by a $20 million award from New York state for debt restructuring. But with the inclusion of several other items and results from Maimonides’ M2 Medical Community Practice, a medical group formed in August 2013, the hospital lost $9.9 million, according to audited financial statements. In 2014, the hospital earned $26.7 million by that same measure, which includes changes related to the facility’s captive insurance program. The medical practice lost $6.7 million on $14.1 million in operating revenue. The Borough Park, Brooklyn, hospital had $1.1 billion in total operating revenue last year, a 2.9% improvement over the prior year. Total operating expenses rose 1.6% to $1.1 billion. The hospital reported a 0.5% increase in salaries and wages—a much slower rate of growth than many other city hospitals—to $537.5 million. The cost of employee benefits rose 4.4% to $161.7 million, and "supplies and other expenses" increased 3.2% last year over 2014. Maimonides said it received $20.8 million in DSRIP funding last year and recognized $6.2 million of that award as revenue because of expenses related to the program. Maimonides started a three-year affiliation with Northwell Health last August. "The ultimate goal of this affiliation is for Northwell Health to eventually become the sole member and/or parent of the medical center, at which time the medical center will be fully integrated into and will function as the Brooklyn hub of Northwell Health, although achievement of that goal is not certain," the auditor wrote. Maimonides lost $4.1 million from hospital and medical-group operations in the first quarter of 2016, according to interim financial statements for that period.

Topics: DSRIP, News

Focus onHealth TV

Watch Focus onHealth, Northwell Health's TV show. It's the healthy way to stay informed!