Minnesota Senate approves $150M lifeline for struggling HCMC hospital

The Minnesota Senate on Wednesday cleared $150 million for HCMC hospital in Minneapolis which leaders warn could close in just months if it isn't given a lifeline and fast.

The measure to support Hennepin Healthcare-the state's busiest trauma hospital-was part of a health and human services package that the DFL-led Senate approved on a party-line vote. The broader spending bill also includes $115 in stabilization for other hospitals that are facing financial struggles, especially with some looming federal changes coming to Medicaid.

There is also funding earmarked to cover uncompensated care for providers and rural emergency medical services.

"[The federal H.R.1] is going to be felt across our state. We need to do what we can this year with the resources we have this year to address these needs," said Sen. Melissa Wiklund, the DFL chair of the health and human services committee.

Lawmakers are also discussing allowing Hennepin County to boost a local sales tax that funded Target Field construction so some of the revenues can flow to HCMC on an ongoing basis.

Hospital leaders told state lawmakers last month that there is a projected operating loss of $40 million to $50 million for this fiscal year. The change, state officials estimate, could bring in $337 million in extra funding per year.

That plan, and what passed the Senate Wednesday, still needs to clear the tied Minnesota House. Legislative leaders have begun end-of-session negotiations ahead of the constitutional last day on May 18.