Minnesota health system board faces dissolution after losing money in 7 of the last 8 years 

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The Hennepin County Board of Commissioners is weighing a proposal to assume oversight of Minneapolis-based Hennepin Healthcare — which operates Hennepin County Medical Center — and dissolve the health system’s board amid ongoing financial challenges, MPR News reported Aug. 5.

The safety-net health system has reported a net operating loss in seven of the last eight years, according to the report. A volunteer board of directors — comprising hospital staff and community leaders — currently oversees the system.

Hennepin County Medical Center is projecting a $36 million deficit this year, largely due to uncompensated care, according to ABC affiliate KSTP

Some board members have pushed back on the proposal, arguing that the board has been actively addressing the system’s financial issues and that the situation is complex due to the high volume of care provided to underinsured or uninsured patients, according to the report.

“If the system dismantles the board, it’s not fixing the problem. It’s making it worse,” said Thomas Adams, PhD, vice president of the board, told KSTP. “It’s a risk to patient care. It opens the door to politicized healthcare, which is the last thing our patients and community need right now.”

A two-thirds vote is required to approve the resolution, which is scheduled alongside the health system’s $1.6 billion budget vote on Aug. 12.

Hennepin Healthcare did not comment on the resolution but acknowledged the urgency of the situation.

“As we are all aware, Hennepin Healthcare is facing unprecedented financial challenges requiring immediate, difficult decisions. Both our county leadership and our Hennepin Healthcare System board of directors are aware of the urgency of the situation,” a spokesperson for the health system told Becker’s. “We will not be commenting on the resolution itself but as the public conversation about our future continues, we trust that all parties involved have the best interests of our patients at heart.”

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