Hennepin Healthcare needs county takeover amid financial crisis

Hennepin Healthcare could need county takeover amid financial crisis

Facing a serious financial crisis and possible shutdown by the end of 2025, Hennepin Healthcare could be taken over by the county. FOX 9's Rob Olson was at a contentious meeting on Tuesday about that very subject.

MINNEAPOLIS (FOX 9) - For a Hennepin County Board committee meeting, the chamber was unusually full Tuesday. 

Outside, peering through the glass walls, dozens more people stood watching, many holding signs urging commissioners to take over Hennepin Healthcare.

The board is poised to do just that next week.

Hennepin Healthcare facing closure amid financial challenges

A Hennepin County board meeting was packed Tuesday as the discussion focused on Hennepin Healthcare's finances. The hospital is facing a possible closure later this year amid serious financial challenges. FOX 9's Rob Olson was there.

The threat of shutting down

What we know:

HCMC has lost money for seven of the past eight years.

In June, the hospital’s CEO said the current financial crisis is so dire, there’s a real risk of closing by the end of 2025.

For the county’s safety-net hospital, which treats anyone who comes in regardless of ability to pay, that news hit hard.

"There have been a lot of herculean efforts to address this issue," noted Commissioner Debbie Goettel. "Time is of the essence. We don’t have a lot of time."

A resolution for the Hennepin County Board to take immediate control of HCMC passed unanimously from this committee hearing on Tuesday, pushing it to a full vote next week.

Before the vote, commissioners heard from about a dozen people, most of whom supported the move.

"It’s clear the path we are currently on is not working," said Mariah Tunkara, a registered nurse.  "And there’s a dire need for reduction in our course."

Worsening financial problems

How we got here:

HCMC has operated as an independent subsidiary of Hennepin County since 2007, governed by its own volunteer board and functioning under the umbrella of Hennepin Healthcare Systems.

Financial problems at HCMC have been well known in recent years, but a recent report to the county said "HHS’s financial condition has continued to deteriorate at an unsustainable pace."

The Hennepin County Board has the power to dissolve the HHS board and resume management of HCMC with a two-thirds vote.

There are seven board members, which means five votes are needed. Six commissioners already voiced their support for the move, and the seventh is expected to follow suit.

Full vote next week

What's next:

With a full vote on Aug. 12, the county would take the reins and try to head off a crisis.

They admitted they have no idea how they’ll do it, but expressed a desire to keep it away from taxpayers.

"The financial picture that we have over next six months, honestly to 2027 when we have Medicaid changes, are going to be big," said Commissioner Heather Edelson. "And we cannot just pass this to the taxpayers. I don’t know how we’re going to do this."

But other board members firmly agreed they have no choice.

"Hennepin County has an obligation to keep this hospital open," said Commissioner Angela Conley. "That is an emergency and that is a call to action with the authority that we have as this board to make sure that our level one trauma center remains open."