Minnesota system on the brink of closure gets $205M lifeline

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Minneapolis-based Hennepin Healthcare will receive $205 million this year under a Minnesota state budget agreement, with up to $500 million available through 2031 to keep it financially viable, state Rep. Esther Agbaje, D-59B, said in a May 13 Facebook post.

“This agreement marks an important step forward for the people we serve and the future of Minnesota’s healthcare safety net,” Jeffrey Lunde, Hennepin Healthcare board chair commissioner, said in a May 14 statement shared with Becker’s. “While more work lies ahead, this agreement brings needed stability and lays the groundwork for continued collaboration on long‑term solutions that will protect access to care for years to come.”

Hennepin Healthcare comprises Hennepin County Medical Center, a level 1 trauma center, and several primary care clinics, according to its website.

Hennepin revealed in early April that it was working to cut $200 million in costs by the end of 2026, but internal savings would not be enough to sustain it, with closure on the horizon, should the state legislature not act. In early February, the system also cut 100 inpatient beds, bringing its total bed capacity to 390, to help save at least $50 million in the first quarter of 2026. 

“Unfortunately, HR1 and its cruelties means that our hospitals and our healthcare system is still at risk,” Ms. Agbaje said. “We will do all that we can in Minnesota to ensure that hospitals like HCMC and others around the state have the resources they need to survive.”

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