ICYMI: The state’s largest safety net hospital is facing closure, and many smaller hospitals across the state are in financial distress. MHA CEO Dr. Rahul Koranne discussed the state of hospital financials across Minnesota on WCCO-AM.
“I’m very afraid that some of these hospitals will be forced to close, and who is going to lose? It’s going to be Minnesotans and Minnesota families, which would be really heartbreaking.”
What’s happening: More than 30 hospitals in the state are in financial distress, including the state’s premier level one trauma center, Hennepin County Medical Center, which has gone to the state legislature asking for financial support. Rural hospitals are in even worse shape, with many already forced to cut services to stay afloat.
How did we get here? More and more patients are covered by government insurance like Medicare and Medicaid, and the federal government doesn’t cover the cost of care when reimbursing for the services hospitals provide to those patients. New federal policies are expected to make the situation worse, with Medicaid cuts leaving more patients uninsured.
“We also have to buy very expensive drugs and the pharmaceutical companies are really making quite a profit from our hospitals,” Dr. Koranne said.
What now? Lawmakers need to act now to create a hospital support pool to keep the doors open.
Learn more about hospital finances.
