Hennepin Healthcare cuts programs and 100 jobs amid deepening HCMC cash crisis
Hennepin Healthcare is cutting five programs and about 100 jobs amid a deepening cash crisis that county officials say left HCMC more than $100 million in the red in 2024, is owed $115 million by collapsed insurer UCare, and faces another $1.7 billion in projected federal reductions over the next decade. Hennepin County is covering payroll and using $38 million a year in property taxes to plug losses while commissioners urge the Legislature to redirect roughly $55 million annually from the Target Field sales tax, warning the hospital is “on life support and at risk of closure” and could begin a formal shutdown as early as May without state aid.
📌 Key Facts
- Hennepin Healthcare said it is “on life support and at risk of closure,” and said only legislative action can stabilize operations.
- County leaders warn Hennepin County Medical Center (HCMC) could begin a formal shutdown process as early as May if the Legislature does not provide aid.
- HCMC reported more than $100 million in losses in 2024, is owed $115 million by collapsed nonprofit insurer UCare, and faces a projected $1.7 billion reduction tied to federal budget changes over the next decade.
- Hennepin County is covering HCMC’s payroll and already uses about $38 million a year in property taxes to plug hospital losses; county commissioners are asking lawmakers to redirect roughly $55 million a year from the Target Field 0.15% sales tax to keep the safety‑net hospital open.
- Commissioners emphasized that HCMC’s deficits stem from its role serving patients who cannot pay; Commissioner Jeffrey Lunde warned the only alternatives are repurposing the sales tax or beginning the closure process.
📊 Relevant Data
In 2023, 39% of BIPOC Minnesotans had Medicaid coverage compared to 13% of White Minnesotans, indicating a higher per capita enrollment rate among BIPOC residents.
Medicaid in Minnesota: The who, what, where, why, and how — MN Compass
Minnesota's foreign-born population grew to nearly 490,000 residents in 2023, comprising 8.6% of the state's total population, with immigration becoming the primary driver of population change from 2020 to 2024.
The Growth and Impact of Minnesota's Foreign-Born Workforce — Minnesota Department of Employment and Economic Development
Hennepin County's foreign-born population was 13.6% of the total population in 2020-2024, with an increase in foreign-born residents from 2013 to 2023, though slower than the statewide increase.
Hennepin County, Minnesota - U.S. Census Bureau QuickFacts — U.S. Census Bureau
About 12% of immigrants in Minnesota were uninsured in 2023, contributing to higher uncompensated care burdens on safety-net hospitals like HCMC.
Minnesota's rollback of health coverage for immigrants will harm ... — Minnesota Budget Project
Minnesota has the largest Somali population in the U.S., primarily due to federal refugee resettlement programs that began in the 1990s for those fleeing civil war in Somalia.
How Minnesota became a hub for Somali immigrants in the U.S. — NPR
Somali immigrants in Minnesota face socioeconomic disparities, including higher poverty rates, which contribute to higher uninsured rates and reliance on public health services.
Somali Immigrants in Minnesota — Center for Immigration Studies
In 2023, Hennepin Healthcare spent $64.2 million on uncompensated care, serving a historically marginalized and racially diverse population with increasing shares of uninsured and low-income patients.
Future of Hennepin Healthcare, HCMC unknown amid $36 ... — KSTP
Undocumented immigrants in Minnesota, numbering about 81,000 in 2019, had nearly 45% uninsured, linked to socioeconomic factors like lower incomes and limited access to employer-sponsored insurance.
Expanding health care options for immigrants benefits us all — Minnesota Budget Project
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- County leaders are now openly warning that Hennepin County Medical Center could begin a formal shutdown process as early as May if the Legislature does not act.
- HCMC lost more than $100 million in 2024 alone and is owed $115 million by collapsed nonprofit insurer UCare; the Trump administration’s budget is projected to pull another $1.7 billion from HCMC over the next decade.
- Hennepin County is currently covering HCMC’s payroll and already uses $38 million a year in property taxes to plug hospital losses; commissioners are asking lawmakers to redirect roughly $55 million a year from the Target Field 0.15% sales tax to keep the safety‑net hospital open.
- Commissioner Angela Conley explicitly tied the red ink to HCMC’s role caring for patients who cannot pay, while Commissioner Jeffrey Lunde said the only alternatives are repurposing the tax or starting the closure process.
- Hennepin Healthcare released a blunt public statement saying 'Hennepin Healthcare is on life support and at risk of closure' and that only legislative action can stabilize operations.