ICYMI: Minnesota hospitals could lose $1 billion due to federal policy changes. MHA vice president of government relations, Mary Krinkie and MHA vice president of finance policy and analytics, Joe Schindler told the Minnesota Senate that hospitals will face dire consequences from changes in the “big beautiful bill” act, and cannot absorb any additional losses if Congress doesn’t extend COVID-era Affordable Care Act (ACA) subsidies.
Services at risk: Last year, 40% of Minnesota’s hospitals had negative operating margins. Now, hospitals are poised to lose more than $620 million a year if 140,000 Minnesotans are no longer eligible for Medicaid as is estimated in 2027.
If the COVID-era subsidies are not extended, hospitals predict a rise in uncompensated care, which may force service closures at hospitals that are already losing money.