House Committee Reviews Financial Status of HCMC and Shutdown of UCare

April 30, 2026

On April 28, the House Health Finance and Policy Committee held an informational hearing on the financial status of Hennepin County Medical Center (HCMC), and the shutdown and outstanding debts of UCare.  

In a presentation, Hennepin County Administrator Jodi Wentland noted that in 2024 alone, Hennepin Healthcare absorbed $104 million in uncompensated care, including $24 million for patients from outside Hennepin County. Federal policy changes, including House Resolution 1, are projected to add to financial strains, potentially resulting in an estimated $1.7 billion in losses over the next 10 years. Additionally, the dissolution of UCare and resulting outstanding claims has had a significant impact on the current financial status of Hennepin Healthcare System. 

HCMC is not the only hospital struggling and Minnesota is not the only state struggling, said Jan Malcolm, senior advisor on hospitals and health systems to the governor’s office. The nature of the hospital’s financial structure, paired with a “perfect storm” of events, has placed HCMC in jeopardy requiring “immediate relief,” she said.  

Julia Dreier, deputy commissioner of the Minnesota Department of Commerce, provided a high-level overview of the financial history and status of UCare, which historically operated primarily in public program markets, including Medicaid and Medicare Advantage. This concentration, combined with limited participation in commercial markets, made the organization particularly vulnerable to shifts in reimbursement rates, utilization trends, and federal policy changes, according to the Minnesota Department of Commerce. 

UCare’s financial status declined rapidly after 2023 when it reported a strong financial position of approximately $1 billion in capital and surplus. In December 2025, a court placed UCare into rehabilitation with the intent to eventually liquidate. It was explained that UCare’s financial decline was driven by a combination of structural and market factors including increased utilization due to deferred care during COVID-19, pharmacy spending growth, rate and margin pressure, and serving a medically complex enrollee base. 

At the end of the hearing, legislators presented three proposals to address the dire situation of Hennepin Healthcare and North Memorial: 

• HF4841, sponsored by Rep. Esther Agbaje (DFL – Minneapolis), would increase a 2007 Hennepin County sales tax used to fund the construction of Target Field, and redirect the revenue to support Hennepin Healthcare. The proposal would increase the tax from 0.15% to 1%, and redirect upwards of $350 million. Roughly $7M would be utilized for Target Field, roughly $24M would be allocated to North Memorial, and the remaining amount would be utilized by Hennepin Healthcare to stabilize hospital operations; 

• HF4892, sponsored by Rep. John Huot (DFL – Rosemount), would temporarily use the state’s General Fund surplus to help cushion HCMC, while the hospital and state work to resolve funding issues; and   

• Rep. Danny Nadeau (R – Rogers) presented a yet-to-be-numbered bill that would dedicate $250 million from the General Fund each year to go to HCMC and North Memorial Hospital. After five years, the amount to HCMC would decrease as the hospital is expected to work toward cost efficiency. The bill would also require the governance of the Hennepin County Hospital Board to transition to 80% membership with professional education and experience working in health system and safety net hospitals.