‘Catastrophic’: Hennepin Healthcare Expects to Lose $1.5B With Medicaid Cuts
Medicaid cuts and new work requirements in the Big Beautiful Bill Act are projected to leave about 140,000 Minnesotans without health care coverage, according to state Department of Human Services statistics.
That prospect has the operators of the state’s largest publicly-funded hospital concerned about its long-term viability.
“We’re vulnerable on a good day and in good economic conditions,” said Dr. Tom Klemond, interim CEO of Hennepin Healthcare. “We struggle to meet our costs, to cover our costs and generally need assistance to, so the bill itself is catastrophic. Especially in the longer term.”
About half of the patients served by Hennepin Healthcare rely on Medicaid to help cover the cost of their doctor bills.
The loss of coverage means that hospitals like Hennepin County Medical Center (HCMC) could see a drop in reimbursement for the services they provide.
Likewise, those without coverage may forego doctor visits or push off preventative care until their health conditions become dire, increasing the strain on emergency rooms.
Hennepin Healthcare, which operates the state’s largest publicly-funded hospital, is concerned about its long-term viability once the Medicaid cuts in the Big Beautiful Bill Act go into effect.
Klemond offered a bleak outlook on the health care provider’s projected revenue after the cuts go into effect.
“We’ve calculated out probably $1.5 billion [in losses] over the next 10 years, which is not survivable,” he said. “That’s our entire budget. So, we’re very worried about the future and our viability with this bill.”
According to Klemond, Hennepin Healthcare isn’t alone.
“I would say nobody’s doing well,” he said. “I think rural hospitals are probably the closest corollary to us. We just have a massive Medicaid need and a large uncompensated population as well. But nobody’s doing really well right now. But I think us and rural are probably what I call ‘the canary in the mine shaft.’ We’re probably doing the worst right now.”
Klemond said he hopes that the community can come together to help Hennepin Healthcare survive into the future.
“But it’s awful,” he added.
Beyond HCMC in downtown Minneapolis, Hennepin Healthcare operates clinics in suburban areas including Golden Valley and Brooklyn Park.
See also: Hennepin Healthcare Offers Food Bags to Hungry Patients
