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.
Have a comment/thought on this? Send us an email. We'll add it here to share with your peers.