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MN lawmakers trying to save HCMC from financial failure
Minnesota lawmakers are trying to save Hennepin Healthcare from financial failure and closure. FOX 9's Corin Hoggard has more.
MINNEAPOLIS (FOX 9) - Lawmakers are weighing a major sales tax increase in Hennepin County to keep the state’s busiest trauma center, HCMC, from closing its doors.
Push to increase sales tax to support hospitals and stadium
What we know:
The proposed measure would raise the Hennepin County sales tax from 0.15% to 1%, aiming to fill a massive gap in federal funding and cover the cost of mandatory emergency care that often goes unpaid. The plan would generate upwards of $300 million a year, with the bulk of the money going to keep HCMC operating.
If passed, the higher sales tax would also direct up to $24 million annually to North Memorial hospitals, which are home to two more struggling trauma centers in the county. The Minnesota Twins could receive up to $7 million a year for stadium improvements under the same proposal, up from $1 million a year from the current tax.
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Lawmakers address $50M Hennepin County Medical Center shortfall
Hennepin County Medical Center (HCMC) is facing a staggering $50 million shortfall, and lawmakers are discussing ways to save the hospital. FOX 9's Corin Hoggard has the details.
Why you should care:
Nearly 100,000 people rely on HCMC every year for emergency care — one-third of whom come from other counties and even Wisconsin, where the nearest trauma center is in Milwaukee, according to lawmakers. But the hospital is now facing a $50 million budget shortfall even after cutting jobs and programs in January. HCMC is losing more than $100 million a year on uncompensated care and expects to lose another $1.7 billion over the next decade because of the recent federal budget bill.
Lawmakers from both parties are backing the bill, with Rep. Danny Nadeau of Rogers saying, "Our healthcare system is in crisis, and HCMC is the tip of the spear. HCMC is at a tipping point that it might not be able to return from."
Some members of the public have shared personal stories about the hospital’s importance. "Without the expertise of Hennepin Health Care, my now 16-year-old daughter and I would not be alive," said Becky Boland of Minneapolis.
The proposal is designed to help all trauma centers in the county, not just HCMC. "The bottom line is, we lost $50 million at Robbinsdale last year. It doesn't matter whose name is on the door," said Trevor Sawallish, CEO of North Memorial Health, which would get up to $24 million a year for trauma center hospitals in Robbinsdale and Maple Grove.
The original 0.15% sales tax was set to expire soon, possibly as early as next year. If the new bill passes, the 1% tax would take effect the day after the governor signs it.
Some lawmakers question whether a sales tax increase is the right approach, especially with part of the money earmarked for the Twins. "It sort of begs the question if the public is going to be providing more increased level of support, including their tax dollars, what are the owners of the Minnesota Twins doing to show Minnesotans that they want to put out a product that Minnesotans want to come and watch and play," said Rep. Mike Howard of Richfield.
Supporters say the measure is likely to pass, but there is still work to be done before it becomes law.
Lawmakers are working to address concerns about the tax hike and stadium funding, but the urgency to save HCMC and other trauma centers is driving bipartisan cooperation.
Big picture view:
The proposal could dramatically reshape how emergency care is funded in Hennepin County, ensuring access for thousands of residents while also supporting private hospitals and a major sports venue.