Hennepin County takes control of HCMC, Hennepin Healthcare

MINNEAPOLIS — The Hennepin County Board of Commissioners voted Tuesday to dissolve the existing board that oversees Hennepin Healthcare and take control of Hennepin County Medical Center following years of financial instability.

Commissioners voted 6-to-1 to assume control of the hospital.

“The goal is to stabilize operations, preserve essential services, and ensure continued access to care for the county’s most vulnerable residents,” said a Hennepin County news release on the vote.

Hennepin Healthcare has lost money for seven of the past eight years, and HCMC is facing a $36 million budget deficit that could grow to $50 million by the end of the year.

“This is not a moment of doubt, it is a moment of determination,” said County Board Chair Dr. Irene Fernando in a statement. “We are stepping in not because of a lack of faith in the people of Hennepin Healthcare, but because we believe so deeply in their mission. Our action today is about protecting the future of this institution and the people it serves.”

Commissioners said hospital closure is a real threat, which is why they’re taking action.

“We have two issues at hand, one of them is the financial viability of the hospital, and the second is the governance structure that meets the needs of HHS, the community and the county board,” said Hennepin County Commissioner Marion Greene.

Supporters on the board said the decision was made in the best interest of patients and employees, as closure of the hospital is not an option. HCMC is Minnesota’s largest Level I adult and pediatric trauma center.

“This is a time of uncertainty, but also of opportunity,” said Dr. Thomas Klemond, Interim CEO of Hennepin Healthcare, in a statement. “We are grateful for the County Board’s support and partnership. Our staff — from nurses and doctors to technicians and support teams — are the heart of this organization. With their continued dedication and the County’s leadership, we will emerge stronger and more resilient.”

Commissioners indicated that the county will not maintain long-term control, but also did not set a date for appointing a new hospital board.

“We need this hospital running, we need it delivering on its core mission, and I think the story we need to start telling people is this hospital isn’t just about Minneapolis, it’s not just about Hennepin, it’s not just about the metropolitan area, it’s not just about this state, but it’s about other states that send people here,” said commissioner Jeffrey Lunde. “