Minnesota safety-net hospitals: 7 at risk due to Medicaid cuts, report finds
‘Big ugly threat’: Hospital outlook report detailed
More than a half dozen Minnesota safety-net hospitals are at risk of closing, reducing services or laying off workers in the process, according to a new report from a consumer nonprofit. FOX 9’s Mike Manzoni went through the report and has the details.
(FOX 9) - A new report from a consumer nonprofit warns that several Minnesota hospitals serving low-income and uninsured patients are facing a major threat that could force them to shut down, reduce services or eliminate positions.
Report highlights growing financial crisis for safety-net hospitals
What we know:
Seven safety-net hospitals in Minnesota are at risk of shutting down, reducing services or laying off staff. The hospitals care for a larger share of low-income patients and others without insurance.
The report, released by Public Citizen, calls the situation a "big ugly threat." The hospitals named in the report lost money over a two-year period, from 2022 to 2024, and at least 20% of their patients were considered low-income.
Many of the financial problems are tied to cuts in federal Medicaid spending, some of which started in January, the report said. The cuts are expected to continue over the next decade.
The report named seven hospitals in Minnesota, including HCMC in downtown Minneapolis. Other hospitals listed were Range Regional Health Services in Hibbing, Lakewood Health System in Staples, Mayo Clinic Health System in Austin, St. Gabriel’s Hospital in Little Falls, Lakewood Health Center in Baudette and Mahnomen Health Center in Mahnomen.
The backstory:
Hennepin Healthcare’s financial struggles have been in the spotlight for months. The hospital said it could begin the process of shutting down as early as next month if state lawmakers do not provide more funding.
Another safety-net hospital, Mille Lacs Health System in Onamia, did not appear on the list but has also warned it could close. Mille Lacs is facing a $4 million budget shortfall, mainly due to a Medicare billing issue.
Local perspective:
Safety-net hospitals are a crucial resource for many Minnesotans who might otherwise go without care. If these hospitals close or reduce services, it could leave entire communities without access to essential health care.