Health omnibus includes $205M for Hennepin Healthcare and a $500M hospital stabilization reserve, plus governance changes

The Senate adopted the conference committee report for Senate File 4612, the health omnibus. Sponsor Sen. Erin Wiklund summarized significant conference changes from the Senate position: reductions in some SNAP and mental health rate increases compared with the Senate bill, and creation of a hospital stabilization reserve and payment structure for Hennepin Healthcare.

The package includes a $500 million reserve account in the general fund from which Hennepin Healthcare may request drawdowns subject to commissioner of health review and validation; the account can be used through June 30, 2031. In addition, direct payments to Hennepin Healthcare and related DHS-directed payments total approximately $205 million across fiscal years, with an initial $50 million payment targeted for FY26 and further scheduled support. Governance language requires reconstitution of the corporate board so that most non-county board members have expertise in hospital administration, finance, business management, law or health equity; county commissioners on the corporate board will be restricted from serving as corporate officers with financial oversight functions.

Senators questioned eligibility (rural PPS hospitals are not included in the stabilization grant program) and funding sources; sponsors answered that stabilization payments come from the general fund and that qualifying hospitals include disproportionate-share Medicaid hospitals, critical access hospitals (eligible for one-time $50,000 payments), and rural emergency hospitals. The conference report passed the floor on a recorded vote.