HCMC warns closure as UCare default and Target Field tax fight converge
Hennepin County Medical Center is facing possible closure after UCare stopped paying debts in December, part of nearly $500 million owed to four large systems that fueled Hennepin’s $100M‑plus loss and spurred talk of a 12–18 month shutdown, while the Minnesota Department of Health now runs the UCare wind‑down and therefore largely controls whether hospitals recover money. Lawmakers have not delivered the Target Field sales‑tax fix Hennepin says is needed to keep HCMC open, and officials — including a Minnesota senator — warn closure could cost lives as unpaid Medicare and UCare claims threaten both urban and rural hospitals like Mille Lacs.
📌 Key Facts
- DHS time-series data show UCare’s Medicaid payouts exploded after the pandemic, and state regulators did not force plans to price those risks correctly.
- UCare stopped making payments on its debts to hospital systems, including Hennepin Healthcare, in December.
- Nearly $500 million is now owed to the four largest hospital systems; Hennepin Healthcare’s share is a $100M‑plus loss that the system says could trigger a 12–18‑month shutdown process.
- The Minnesota Department of Health is running the UCare wind‑down after ordering a merger, placing the state in control of how much, if anything, hospitals such as HCMC will recover.
- Hennepin County says a Target Field sales‑tax fix is needed immediately to keep HCMC open, but lawmakers have not yet delivered that fix.
- FOX 9 frames HCMC’s crisis as concrete (not hypothetical) and situates it within a broader, statewide pattern in which unpaid Medicare and UCare claims are simultaneously threatening both rural hospitals (e.g., Mille Lacs) and urban hospitals (e.g., HCMC).
📊 Relevant Data
Approximately 15,000 adult immigrants in Minnesota lost access to state-funded health care on January 1, 2026, potentially increasing the number of uninsured patients and straining hospital finances due to uncompensated care.
Adult Immigrants in Minnesota Lost Access to State-Funded Health Care on Jan. 1 — U.S. News & World Report
In 2023, 48% of patients at Hennepin County Medical Center were on Medicaid, which reimburses at a fraction of the rate of Medicare or private insurance, contributing to the hospital's financial deficits.
Hennepin County Medical Center is an important statewide asset and must be saved — Minnesota Reformer
Minnesota hosts the largest Somali population in the United States, with many arriving as refugees fleeing civil war, resettled through federal programs like the Refugee Act of 1980, leading to higher Medicaid enrollment due to socioeconomic challenges post-resettlement.
How Minnesota became a hub for Somali immigrants in the U.S. — NPR
The population of Mille Lacs County, Minnesota, grew by 4.8% from April 1, 2020, to July 1, 2025, with a racial composition of approximately 89% White, 4% Native American, and minimal net immigration impact.
Mille Lacs County, Minnesota — U.S. Census Bureau QuickFacts
Hennepin County Medical Center estimates a $1.7 billion loss over the next decade due to Medicaid shifts and an increase in uninsured Minnesotans, exacerbating financial pressures on the safety-net hospital.
Hennepin County Medical Center estimates $1.7B loss over the next decade as Medicaid shifts strain hospitals — The Minnesota Daily
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- The FOX 9 article underscores that Hennepin Health’s shutdown risk is no longer hypothetical — it is presented alongside Mille Lacs as one of "another" Minnesota hospitals that "may have to close" soon.
- It reiterates that lawmakers have not yet delivered the Target Field sales‑tax fix that Hennepin County says is needed to keep HCMC open, emphasizing the immediacy of the decision point.
- It situates HCMC’s crisis within a broader statewide pattern where unpaid Medicare and UCare claims are simultaneously threatening both rural and urban hospitals.
- 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.