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Minnesota lawmakers reach $705M deal to keep HCMC open
State lawmakers on Wednesday struck a bipartisan deal to keep the cash-strapped Hennepin County Medical Center open, but county leaders said the hospital will still need a long-term solution. FOX 9's Mike Manzoni has the story.
MINNEAPOLIS (FOX 9) - State lawmakers on Wednesday struck a bipartisan deal to keep the cash-strapped Hennepin County Medical Center open, but county leaders said the hospital will still need a long-term solution.
State lawmakers reach funding deal for HCMC
What we know:
The rescue plan will give HCMC, a county-run safety-net hospital, $205 million immediately and set aside another $500 million that would become available next summer. The funding comes as part of a broader bipartisan budget package that also includes property tax relief and cuts to car registration fees.
The backstory:
HCMC has lost more than $100 million a year for the last several years and projects losses of $1.7 billion over the next decade, largely because it treats patients who either cannot pay or who are underinsured. It has also said that cuts to Medicaid will contribute to its projected losses.
Leaders from both parties negotiated the agreement just days before the legislative session ends.
"Without HCMC, everything else would probably start to crumble," said State Rep. Esther Agbaje, DFL-Minneapolis.
HCMC’s financial future and reactions from leaders
What they're saying:
In a statement on Thursday, Hennepin Healthcare Board Chair Jeffrey Lunde said, in part: "While more work lies ahead, this agreement brings needed stability and lays the groundwork for continued collaboration on long-term solutions that will protect access to care for years to come."
"We were able to help HCMC without any raising of taxes," noted House Speaker Lisa Demuth, R-Cold Spring.
At least two proposals would have raised the Target Field sales tax and rerouted it to fund HCMC, but those measures fell through. The ballpark tax will instead sunset when the bonds used to pay for the stadium are paid off, as initially planned.
What's next:
The deal is expected to be signed by Gov. Tim Walz after it moves through both chambers.
The rescue plan will keep the hospital open for now, but HCMC is still projecting losses of $1.7 billion over the next decade. Hospital leaders said more funding will be needed in the future.