{"id":45,"date":"2025-07-28T19:46:33","date_gmt":"2025-07-28T17:46:33","guid":{"rendered":"https:\/\/opellahealthcare.us\/?p=45"},"modified":"2025-07-28T19:46:33","modified_gmt":"2025-07-28T17:46:33","slug":"hennepin-healthcare-financial-struggles-mount-with-rising-costs-fox9","status":"publish","type":"post","link":"https:\/\/opellahealthcare.us\/index.php\/2025\/07\/28\/hennepin-healthcare-financial-struggles-mount-with-rising-costs-fox9\/","title":{"rendered":"Hennepin Healthcare financial struggles mount with rising costs – Fox9"},"content":{"rendered":"\n

 One of the state\u2019s biggest hospitals<\/a> is in dire financial straits, as executives at Hennepin Healthcare say Medicaid reimbursement rates and rising supply costs have pushed the hospital system to its brink.<\/p>\n\n\n\n

Hennepin Healthcare financial struggles<\/h2>\n\n\n\n

What they’re saying:<\/p>\n\n\n\n

Hennepin Healthcare<\/a> CEO Thomas Klemond says the Hennepin County Medical Center (HCMC) prides itself on treating low-income patients who don\u2019t have insurance or rely on Medicaid, but with low reimbursement rates and rising costs, it\u2019s getting harder to support the hospital\u2019s mission.<\/p>\n\n\n\n

Klemond said the end of the COVID-19 Public Health Emergency de-enrolled many people from Medicaid and more patients lost insurance.<\/p>\n\n\n\n

The change accounted for a $67 million decline in revenue compared to 2022, with 10% of patients now uninsured or under-insured \u2013 up from 6% in 2022. Leadership says they believe this is the new normal.<\/p>\n\n\n\n

When asked if the hospital faces closure if the situation doesn’t change, Klemond said: “I think we have to say that\u2019s a real possibility.”<\/p>\n\n\n\n

HCMC not alone<\/h2>\n\n\n\n

Dig deeper:<\/p>\n\n\n\n

The Minnesota Hospital Association (MHA) reports that 67% of hospitals across the state had negative operating margins in the first half of 2023.<\/p>\n\n\n\n

“It\u2019s not one single thing, it\u2019s a thousand paper cuts,” said Vice President of Finance Policy at MHA Joe Schindler. <\/p>\n\n\n\n

Schindler says dropping insurance reimbursements is killing health systems, with Medicare and private payers alike not matching rising costs.<\/p>\n\n\n\n

HCMC reports supply costs have increased 8% in recent years.<\/p>\n\n\n\n

Staff and service cuts likely<\/h2>\n\n\n\n

Big picture view:<\/p>\n\n\n\n

While HCMC says it is trying to avoid cuts, they admit it\u2019s likely unless they receive a cash infusion.<\/p>\n\n\n\n

In a statement, the union that represents nearly 1,400 Hennepin Healthcare employees said they strongly oppose any cuts, saying in part:<\/p>\n\n\n\n

“Hennepin Healthcare executive leadership should take responsibility for the financial \u2018crisis\u2019 they helped create\u2026 We already work short-staffed, underpaid, and overstretched\u2014and we strongly oppose any frontline cuts to jobs, wages, or benefits.”<\/p>\n\n\n\n

<\/p>\n\n\n\n

Source: https:\/\/www.fox9.com\/news\/hennepin-healthcare-financial-struggles-july-2025<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

 One of the state\u2019s biggest hospitals is in dire financial straits, as executives at Hennepin Healthcare say Medicaid reimbursement rates and rising supply costs have pushed the hospital system to its brink. Hennepin Healthcare financial struggles What they’re saying: Hennepin Healthcare CEO Thomas Klemond says the Hennepin County Medical Center (HCMC) prides itself on treating low-income patients who […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-45","post","type-post","status-publish","format-standard","hentry","category-non-classe"],"_links":{"self":[{"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/posts\/45","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/comments?post=45"}],"version-history":[{"count":1,"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/posts\/45\/revisions"}],"predecessor-version":[{"id":46,"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/posts\/45\/revisions\/46"}],"wp:attachment":[{"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/media?parent=45"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/categories?post=45"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/opellahealthcare.us\/index.php\/wp-json\/wp\/v2\/tags?post=45"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}