HCMC lays off 100 employees as its financial crisis deepens

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Hennepin Healthcare says it will also be closing acupuncture, sleep and chiropractic services, as well as integrating some stand-alone clinics.

MINNEAPOLIS — On Monday, Hennepin Healthcare officials held a news conference and said the Minneapolis hospital is in crisis mode, operating so deep in the red that it’s now laying off about 100 people and shuttering some services.

“Even if we do diminish staff and that, we will not be able to stay open, I can promise you that,” said Dr. J. Kevin Croston, co-administrator of Hennepin Healthcare.

Dr. Croston took over earlier this month, along with former Hennepin County Administrator David Hough. 

They confirmed the layoffs and said it will also be closing or integrating some stand-alone clinics and services:

  • Integrative health: We will close chiropractic and acupuncture services and refer patients to external providers.
  • Senior and extended care: Older adult patients will be seen in primary care and nursing home services will be transitioned to other systems.
  • Sleep services: We will close this clinic but will continue to do screening tests through primary care.
  • Interventional pain: Medical treatments will move to primary care and other interventional services will be referred to external providers.
  • Weight management: Medical and surgical services will be reduced and integrated into the Clinic and Specialty Center instead of operating as a stand-alone clinic.

“Unfortunately, our new reality is, this is the first of many very difficult decisions going forward,” said Hough.

The two are blaming, in part, fewer patients and a lack of federal funding that’s severely cutting its Medicaid reimbursements. 

The hospital is largely publicly funded and mostly serves low-income patients. But it’s also renowned for its trauma and burn centers, and is a training ground for half of the state’s new doctors. 

“We want to keep the things that make Hennepin County Medical Center unique,” said Dr. Coston. “We want to keep them open and available.”

The financial problems date back several years, but are now forcing the new administrators to use a county line of credit to fund January’s payroll and find at least $50 million in savings by the end of March.

“You can’t property tax your way out of those types of losses,” said Hough.

To try and get more funding, the hospital is suggesting repurposing tax money from the Target Field, but that would take legislative support and is something the hospital hasn’t had before.

A team spokesperson told KARE 11 that, in short, it means its lease would have to be extended and rent would go up. The spokesperson also said the team supports working with the county and plans to meet with its board soon.

“These patients get outstanding care here and it would be a shame to lose that,” said Dr. Croston.

The hospital says patients shouldn’t cancel any of their appointments; rather, keep them until notified otherwise, as it plans to help them continue their care through referrals and other providers.