March 31, 2026
A call to action from the MMA Board of Trustees
Many hospitals and other healthcare facilities are facing financial challenges and the looming federal Medicaid cuts compound the uncertainty. But the situation at Hennepin Healthcare and its Hennepin County Medical Center (HCMC) is dire. Without quick intervention, HCMC could perish before our eyes. We can’t let that happen and we need your help.
Hennepin Healthcare and HCMC play a critical role in Minnesota’s – and the region’s – care delivery system. HCMC is Minnesota’s largest Level 1 trauma center for both adult and pediatric patients, serving approximately 3,000 seriously ill or injured patients per year and providing 100,000 emergency department visits annually. HCMC is also home to the state’s regional burn and hyperbaric centers and is the leading safety net provider. According to the Minnesota Hospital Association, 75% of HCMC’s patient population is publicly insured or uninsured. In 2024, Hennepin Healthcare absorbed $104 million in uncompensated care, 20% of total uncompensated care costs in the state, including $24 million for patients from outside Hennepin County.
Hennepin Healthcare is also one of Minnesota’s most important training sites for physicians and other healthcare professionals. Hennepin trains nearly one-third of all graduate medical education trainees in Minnesota, and 60% of undergraduate medical education trainees in Minnesota. Many of us have incredible and indelible memories of our time spent at Hennepin. It is truly a special place.
Hennepin Healthcare leadership has reported a projected 2026 operating loss of $40 to $50 million, with up to $1.7 billion in negative financial impacts over the period of 2027 to 2038. As recently reported, Hennepin leadership has already cut several programs, reduced patient beds by 100, eliminated about 100 positions, and paused $24 million in spending on infrastructure projects. The reasons for the financial situation are complex. Some of the key contributing factors include reductions in Medicaid enrollment, increasing levels of uncompensated care, the closure of UCare, and, beginning in 2027, payment cuts and additional Medicaid enrollment reductions associated with H.R. 1 (the “One Big Beautiful Bill Act”).
The Minnesota Legislature is currently debating potential solutions, including an extension of the Hennepin County sales tax and/or an increase in the ballpark sales tax. Last week, Gov. Tim Walz announced the appointment of Jan Malcolm, former commissioner of health, as a senior advisor to address the financial challenges facing HCMC and others. She is tasked with working with leaders from hospitals and health systems to tackle financial challenges, enhance coordination between the state and hospital systems, and develop recommendations for the governor’s office. Short-term and long-term legislative action may be needed.
If Hennepin Healthcare’s capacity is diminished, patients in every region of Minnesota will suffer, and medical student and residency training will collapse. Please contact your legislators today and urge them to preserve Hennepin Healthcare and save this essential state asset. The health of all Minnesotans depends on it.
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Feedback:
Thank you for this important message, making more calls this morning. We need to save HCMC for all of the reasons you stated. With appreciation,
- Magda Bushara, MD, FACP
As a recipient of a great deal of my medical education at "The General" (internship and almost two years of general surgery residency before getting drafted into military service) in 1959-62, I am convinced that the experience and maturation provided there a solid base from which to further develop into a competent orthopaedic surgeon. I served the community locally for 35 years and feel today as strongly as I did way back in the day that HCMC´s role in the community is pivotal, providing very broad services, and is essential to maintain the community´s standard of life.
- John A. Wilson MD
I agree 100% that we need to do whatever is needed to keep HCMC afloat. But realize that this is only a small portion of the entire problem. Here in rural Minnesota our rural critical access hospitals are likewise facing severe financial problems for much of the same reason as HCMC is facing its problems. Several will probably be forced to close( and would already be closed if not for the massive buy up of rural hospitals by larger entities, who are already cutting services, but they will only tolerate so much).
In order to get to the root cause of the problem, I would encourage the MMA to talk to state legislators to put significant pressure on federal legislators to reverse the damage that is being done by cuts in healthcare.
And while I am generally not fond of public shaming, maybe the MMA needs to do a public campaign on why all of this is happening and who has been involved in the cuts in healthcare that is making this tragedy unfold.
Thank you for everything that you do for Minnesota.
- Daron Gersch, MD , FAAFP
ER Director for four critical access hospitals in Minnesota