HCMC warns closure as UCare default and Target Field tax fight converge
Hennepin County Medical Center warns a potential closure that could cause patient deaths after UCare stopped making payments in December, leaving nearly $500 million owed to the four largest hospital systems and saddling Hennepin with a $100M‑plus loss that has prompted talk of a 12–18 month shutdown. State data show UCare’s Medicaid payouts surged after the pandemic, and with the Minnesota Department of Health now running the UCare wind‑down following an ordered merger, the state will largely determine whether and how much HCMC recovers.
📌 Key Facts
- UCare stopped making payments on its debts to hospital systems, including Hennepin Healthcare, in December.
- Nearly $500 million is owed to the four largest hospital systems; Hennepin Healthcare faces a $100M+ loss and has discussed a 12–18‑month shutdown process.
- Minnesota DHS time‑series data show UCare’s Medicaid payouts more than doubled and effectively 'exploded' post‑pandemic.
- Those DHS data suggest state regulators either did not act on the payout spike or did not force plans to price coverage correctly as payouts surged.
- The Minnesota Department of Health is now running the UCare wind‑down after ordering a merger, meaning the state controls how much, if anything, Hennepin Healthcare ultimately recovers.
📊 Relevant Data
Minnesota Medicaid enrollment increased from 844,467 in February 2020 to 1,010,831 in January 2021, a 19.7% increase, due to the continuous enrollment provision during the COVID-19 pandemic.
Minnesota Medicaid Enrollment Grew More than the U.S. Average During COVID-19 — SHADAC
Minnesota Medicaid enrollment peaked at approximately 1.4 million in FY 2023 before declining to 1.26 million in FY 2024 following the end of the continuous enrollment provision.
Minnesota and Medicaid: What the data says — USAFacts
Among children under age 6 enrolled in Medicaid in Minnesota from Jan 2020 to Jan 2023, 51% were White, 25% Black, 12% Hispanic, 8% Asian, and 4% Native American.
Continuous Eligibility in Medical Assistance: A Step Toward Racial Equity — Minnesota Department of Human Services
Black children represent 25% of Medicaid enrollees under age 6 in Minnesota but only about 7% of the state's overall population, indicating an overrepresentation of approximately 3.57 times per capita.
Continuous Eligibility in Medical Assistance: A Step Toward Racial Equity — Minnesota Department of Human Services
73% of Somali immigrant households in Minnesota have at least one member enrolled in Medicaid, based on data from 2014 to 2023.
Somali Immigrants in Minnesota — Center for Immigration Studies
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Confirms that UCare stopped making payments on its debts to hospital systems, including Hennepin Healthcare, in December.
- Quantifies that nearly $500M is owed to the four largest systems, directly feeding Hennepin’s $100M‑plus loss and its talk of a 12–18‑month shutdown process.
- Provides time‑series DHS data that show UCare’s Medicaid payout curve exploding post‑pandemic, something state regulators either didn’t act on or didn’t force the plans to price correctly.
- Makes clear that MDH is now running the UCare wind‑down after ordering a merger, meaning the state is in the driver’s seat on how much, if anything, HCMC ever sees.