J. Kevin Croston, MD, has resigned as co-administrator of Minneapolis-based Hennepin Healthcare, effective April 1, a spokesperson confirmed to Becker’s.
The resignation comes as the health system pursues financial stabilization efforts, including plans to cut $200 million in costs by the end of 2026. Hennepin Healthcare and local leaders are also seeking state legislation to repurpose and expand an existing Hennepin County sales tax to create a recurring, stable funding mechanism.
Dr. Croston, former CEO of Robbinsdale, Minn.-based North Memorial Health, and former Hennepin County Administrator David Hough were appointed temporary transition and stabilization leads in October. In January, Thomas Klemond, MD, stepped down as interim CEO, and the board named Dr. Croston and Mr. Hough co-administrators.
Mr. Hough will continue leading the organization, according to a letter to employees shared with Becker’s.
“We thank Dr. Croston for his service and for his contributions to advancing our stabilization efforts,” Jeffrey Lunde, Hennepin County commissioner and chair of Hennepin Healthcare’s board, said in a statement shared with Becker’s.
“Dr. Croston stepped into this temporary leadership role at a critical moment, helping guide an initial response to the organization’s urgent financial challenges. His leadership helped position Hennepin Healthcare for the work ahead and reinforced our commitment to preserving access to essential care.”
Mr. Lunde said Hennepin Healthcare remains focused on securing legislative approval for a 1% sales tax in Hennepin County as a funding source.
“Over the last three months, both co-administrators have worked closely with your executive leadership team to stabilize finances, find operational efficiencies and guide a strategy to support this organization’s long-term viability,” the letter states. “This work will continue as we advocate to repurpose and expand the ballpark sales tax to sustain your work.”
Hennepin Healthcare said it expects a proposal to be formally introduced the week of April 6.
The system has already taken steps toward its cost-cutting goal, including reducing 100 inpatient beds in early February, bringing total capacity to 390.
Hennepin Healthcare — Minnesota’s largest safety-net hospital — includes Hennepin County Medical Center and a network of clinics, according to its website.
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