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Unless Congress acts, important Medicare telehealth flexibilities will lapse on October 1.
CentraCare Lays Off More than 500, County Takes Over HCMC
August 14, 2025
It was a tumultuous week for healthcare in Minnesota as St. Cloud-based CentraCare announced that it was laying off 535 of its employees, and the Hennepin County Board of Commissioners voted to dissolve the Hennepin Healthcare System board, which controls Hennepin County Medical Center (HCMC) in downtown Minneapolis.
Both decisions were financially motivated.
A large majority, 70%, of the CentraCare layoffs include administrative and support positions. “To safeguard the organization’s stability and to continue delivering high-quality care, we have made difficult, but necessary, staffing adjustments,” CentraCare stated.
The Hennepin County Board’s action is in response to a “mounting financial crisis that threatens the long-term viability of the county’s flagship public hospital and safety-net health system,” the board said in a release. HCMC has reportedly lost money seven of the past eight years.
The County Board’s goal is to “stabilize operations, preserve essential services, and ensure continued access to care for the county’s most vulnerable residents.”
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