Maryland Department of Health Risk Report

⚖️ Legal & Regulatory

The Maryland Department of Health is facing significant legal and regulatory challenges. The department is entangled in several lawsuits and regulatory scrutiny that could impact its operations and financial standing. Concerns around Medicaid fraud and regulatory penalties are presenting notable risks.

• A lawsuit was allowed to proceed 🗓 May 1, 2025, involving missed nursing home inspections, potentially exposing the department to significant legal liabilities.
• State officials expressed concerns 🗓 May 14, 2025, that federal Medicaid cuts could undermine Maryland's health system.
• On 🗓 April 3, 2025, nearly 3,000 jobs were cut in Maryland due to federal health agency scale-backs, raising regulatory compliance challenges.
• The department faces a lawsuit filed 🗓 January 9, 2025, over leaving mentally ill criminal defendants in jails without prompt hospitalization.
• Concerns about allegations of mismanagement at a psychiatric hospital were reported 🗓 October 16, 2024.

👥 Labor & Workforce

The Maryland Department of Health is encountering substantial workforce challenges, marked by significant turnover in leadership and broad layoffs. This uncertainty in leadership continuity may affect operational efficiency and morale among health department employees.

• Key health department personnel, including two deputies, left their positions amidst looming federal cuts 🗓 June 20, 2025.
• The department saw a significant shakeup 🗓 June 2, 2025, as a leadership member departed amidst ongoing organizational restructuring.
• Maryland's health sector, involving state offices, accounted for a quarter of Health and Human Services (HHS) layoffs reported 🗓 April 3, 2025.

🏗️ Operational & Business Continuity

Operational risks are further compounded by federal financial constraints, facing potential disruption to business continuity. The department is struggling with staffing issues, budget cuts, and restructuring challenges that threaten to destabilize its service delivery mechanisms.

• The Maryland Department of Health partially lifted a moratorium on new mental health providers on 🗓 July 1, 2025, reflecting ongoing efforts to address operational inefficiencies.
• The department was hit by federal cuts that risk the continuity of critical services; key stakeholders raised concerns 🗓 April 1, 2025, about losing hundreds of millions in federal health grant cuts.
• Maryland experienced operational constraints related to Medicaid and SNAP cuts, posing risks to business continuity 🗓 June 20, 2025.

📜 Innovation & R&D

Despite facing financial and operational difficulties, the Maryland Department of Health continues to focus on innovation. Efforts to leverage technology and new programs underscore its commitment to modernizing health services.

• The department announced progress in using the CRISP HIE 🗓 April 12, 2025, showcasing new use cases in clinical settings to improve healthcare delivery.