Minnesota state lawmakers have introduced legislation that would increase Hennepin County sales tax revenue to help fund financially challenged Hennepin County Medical Center in Minneapolis, MinnPost reported April 10.
The proposal would also provide funding to Robbinsdale, Minn.-based North Memorial Health and other healthcare facilities, according to the report.
The legislation would raise Hennepin County’s existing 0.15% sales tax to 1%, the report said. The 0.15% tax is currently used to pay off bonds for the construction of Target Field in Minneapolis used by the Minnesota Twins. The proposal could generate about $337 million annually for HCMC and $24 million for North Memorial. About $7 million would go to Target Field.
HCMC’s owner, Minneapolis-based Hennepin Healthcare, is currently working to cut $200 million in costs by the end of 2026. To that end, the system has already eliminated 100 inpatient beds in February, bringing capacity to 390.
Health system and local leaders have said cost-cutting efforts alone aren’t enough to keep the safety-net hospital afloat and are seeking state help to keep the doors open. Hennepin Healthcare is projected to see a $100 million loss in compensated care and a $1.7 billion reduction in Medicaid revenue over the next decade.
Hennepin County Commissioner Jeffery Lunde — who also serves as chairman of Hennepin Healthcare’s board — said without approval for the tax, HCMC will close.
“We cannot raise Hennepin County property taxes to cover the gap,” he said.
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