The Hennepin County (Minn.) Board of Commissioners voted Aug. 12 to take over and dissolve Minneapolis-based Hennepin Healthcare’s board amid financial difficulties at the system.
The takeover grants the county board direct oversight of the health system’s governance during “this critical period,” according to an Aug. 12 news release from the county. It aims to help stabilize operations, maintain care access and safeguard essential services.
Hennepin Healthcare comprises Hennepin County Medical Center, a 484-bed academic medical center. It also features a network of clinics and an outpatient clinic and specialty center, according to its website.
“[In] recent months, the system has faced unprecedented financial pressures, with the risk of closure looming by the end of the year if corrective action is not taken,” the release said.
In early August, county commissioners shared that they were weighing a proposal to assume oversight of the safety-net health system, which has reported a net operating loss in seven of the last eight years. Hennepin County Medical Center is also projecting a $36 million deficit in 2025, mainly due to uncompensated care.
Tom Klemond, MD, interim CEO of Hennepin Healthcare, said in an Aug. 13 statement shared with Becker’s that while the system’s governance has changed, its mission remains the same.
“We will work closely with our Hennepin County Board of Commissioners on a transition plan that best supports and preserves the vital work that we do, and centers patient care at every turn,” Dr. Klemond said.
