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Mille Lacs Health System faces funding issues
Mille Lacs Health System is millions short of funding, and now running out of savings. FOX 9’s Mike Manzoni spoke with the hospital’s CEO, who is in part blaming a Medicare glitch on the shortfall.
ONAMIA, Minn. (FOX 9) - Another Minnesota hospital is warning it may have to close its doors as financial pressures mount.
Mille Lacs Health System struggles with missing payments
What we know:
Mille Lacs Health System in Onamia is running out of savings and now faces a $4 million deficit. The hospital system said Medicare owes it nearly $3 million for legitimate services that were never paid because of a technical glitch.
UCare, a nonprofit insurer that shut down last year, still owes the hospital about $1 million.
What they're saying:
"As a hospital system that’s 60 percent Medicare, that’s a lot of our revenue stream that all of a sudden’s not there anymore," said Andy Knutson, Mille Lacs Health System CEO. "The savings are getting lower and lower as we go on to the point where now we’re starting to look for banks and lines of credit to help us get through this point."
"We found out that a number of our providers were deactivated on Medicare’s side, and we are not sure why they got deactivated," he said. "And it was taking every single visit that was associated with those providers and rejecting them."
He said Medicare claims to have fixed the issue, but it still has not paid the money owed.
A Mille Lacs Health System spokeswoman said: "We’ll believe it when we see it."
The backstory:
UCare, which shut down last year, owes hundreds of millions of dollars to various Minnesota hospital systems, including about $1 million to Mille Lacs Health System. The financial strain on hospitals across the state continues to grow as they wait for overdue payments.
Hennepin Health faces its own financial crisis
Local perspective:
Hennepin Health is also dealing with major financial problems. The county-run health system said it may have to shut down soon, which would mean closing Hennepin County Medical Center in downtown Minneapolis.
The county is waiting on lawmakers to pass a bill that would reroute baseball park tax dollars to keep the hospital open.
Why you should care:
The possible closure of these hospitals would have a major impact on healthcare access for Minnesotans, especially in rural areas and the heart of Minneapolis. Many patients rely on these facilities for critical care and everyday health needs.