Medicaid cuts put HCMC, six safety-net hospitals at risk
Hennepin County Medical Center and six other Minnesota safety-net hospitals face financial risk from proposed state Medicaid cuts this year.
A new report says the cuts would reduce reimbursements these hospitals rely on to serve low-income, uninsured, and Medicaid patients. The hospitals include HCMC and six other clinics and systems that serve urban and rural communities across Minnesota.
The report warns that lower Medicaid payments could force cuts to services, reductions in staff, or closures that would narrow access for vulnerable populations. Advocates and local leaders have called attention to the potential impacts, urging lawmakers to weigh community needs as they consider budget changes. The coverage highlights concerns about the stability of Minnesota's safety-net system as the state debates Medicaid funding.
đ Key Facts
- Public Citizen report flags seven Minnesota safety-net hospitals as at risk of closure, service cuts or layoffs, including HCMC in downtown Minneapolis.
- The hospitals named all lost money from 2022â2024 and have patient mixes with at least 20% low-income or uninsured patients.
- The report ties the financial crisis to federal Medicaid spending cuts that began in January and are expected to continue over the next decade.
- Hennepin Healthcare says HCMC could begin shutdown steps as early as next month without new state funding, while Mille Lacs Health System faces a $4 million shortfall tied to a Medicare billing issue.
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