ICYMI: Minnesota’s more than 130 nonprofit hospitals absorbed $6.5 billion in uncompensated care in 2025, a 5% increase from the previous year.
The Duluth News Tribune editorial board outlined how underfunding from Medicare and Medicaid is causing financial strain for hospitals:
Essentia estimates it’s now receiving as little as 63 cents in federal reimbursement for every dollar spent caring for Medicare- or Medicaid-covered patients. Essentia puts its federal underpayments at a staggering $302 million annually.
With all health care providers in the same financial predicament, is it any wonder some are going out of business? Just weeks ago, the Hennepin County Medical Center in Minneapolis reported to the Minnesota Legislature that without state financial help it would close this year.
MHA CEO Rahul Koranne previously spoke to the Rochester Post Bulletin about this issue:
“So many of the hospitals are financially unstable. We are proving that they’re still pouring not just their dollars, but their soul, their heart and their minds into their communities … despite the financially difficult state.”
“Community benefit is not something nonprofit hospitals are required to do — it is why we exist. Long before any formal reporting requirements, Minnesota’s hospitals were caring for people, regardless of their ability to pay, as well as supporting public health and strengthening their communities.”
