HCMC at risk of closure without state aid
Medicaid funding changes could close HCMC
The Hennepin County Medical Center could face closure if they don't receive aid from the state. FOX 9's Mike Manzoni has more.
MINNEAPOLIS (FOX 9) - Hennepin County Medical Center is facing a critical financial situation, with county leaders warning it could close without state intervention.
HCMC seeks help amid financial struggles
What we know:
HCMC has been losing tens of millions of dollars annually, partly due to treating patients who cannot pay. In 2024 alone, the hospital lost more than $100 million. The downfall of nonprofit health insurer UCare, which owes the safety net hospital $115 million, has worsened the situation, officials said.
In testimony at the Minnesota State Capitol on Wednesday, Hennepin County Commissioner Angela Conley told lawmakers that the hospital's financial woes are linked to its commitment to treating patients unable to pay. The Trump administration's budget is also expected to take $1.7 billion from HCMC over the next decade, she added.
The plan:
Hennepin County leaders are asking state lawmakers to repurpose a sales tax initially intended for Target Field debts to support the hospital. Commissioner Jeffrey Lunde mentioned two possible paths: expanding the 1 percent sales tax or starting the process of closing the hospital.
In January, Hennepin Healthcare, which oversees the hospital, took steps to reduce its expenses, including cutting five programs and 100 employees to close a $50 million budget gap.
Lunde said the hospital’s financial situation is so dire that the county is now covering the hospital's payroll.
HCMC 'is on life support,' asks for state help
In a statement on Thursday, Hennepin Healthcare said, in part: "Hennepin Healthcare is on life support and at risk of closure. The hospital has taken aggressive steps to contain costs but needs legislative action to stabilize operations."
Hennepin County currently uses $38 million annually in property taxes to help cover HCMC's losses. The Target Field tax generates about $55 million a year, which county leaders hope to redirect to the hospital.
What's next:
Lunde said if state lawmakers do not act, the hospital could begin the process of shutting down as early as May. He said that process could take more than a year.