Senate chair unveils hospital stabilization draft including $150 million one-time grant for HCMC; hospitals and nurses back plan

The committee heard an informational draft April 15 proposing a hospital stabilization program intended to shore up hospitals and safety-net providers facing financial strain. The chair said the draft would provide direct grants to hospitals that meet defined criteria of financial distress and would include quarterly reporting requirements, auditor review of Hennepin County Medical Center’s compliance with conditions, and reporting to improve statewide understanding of hospital financial stability.

The draft sets a proposed one-time HCMC grant of $150,000,000 in the first biennium and additional targeted funds to hospitals, community-based safety-net providers, and EMS. The chair said the program is not yet tied to an ongoing funding source but could be structured to receive additional funding later. She emphasized accountability measures, including strategic-plan reporting for Hennepin County and a role for the legislative auditor to verify compliance.

Hospital advocates supported the approach but asked refinements. Michelle Benson (Minnesota Hospital Association) thanked the committee and asked for technical refinements to eligibility criteria and recommended moving the timing of an annual report from November to the February forecast to use fresher data. Ben Ballio (Minnesota Nurses Association) supported the stabilization steps for HCMC and urged guardrails to ensure money reaches the most distressed facilities and that long-term funding is resolved to avoid workforce instability. Representatives of FQHCs and community mental health urged inclusion of support for the broader safety net and flagged severe operational strains if Medicaid coverage is reduced under HR1 implementation.

The matter will be formalized in amendment language and considered at the committee’s markup the next day; no appropriation was finalized during the hearing.