Minnesota lawmakers introduced bipartisan bills this week in both the House and Senate to increase Hennepin County sales tax revenue to fund HCMC and provide additional financial assistance to North Memorial and other healthcare facilities.
During a hearing of the state’s House Taxes Committee Thursday, lawmakers discussed House File 4841 which aims to address HCMC’s dire financial situation. The bill was introduced by chief author Rep. Esther Agbaje, DFL-Minneapolis and co-author Rep. Danny Nadeau, R-Rogers. Numerous individuals testified in support of the bill.
The proposed plan is the first draft. It suggests repurposing the county’s existing 0.15 percent sales tax, which is currently used to pay off bonds for Target Field’s construction, into a 1 percent sales tax. This change could generate about $340 million annually for HCMC, with the remaining funds allocated for ballpark-related investments. Hennepin County requires legislative approval to reallocate these funds as a health care tax to cover ongoing expenses.
“Everybody in the legislature, both parties, know what an important asset this facility is in Minnesota. And there's a lot of support to make sure that we help the hospital be successful, but what that looks like now is just beginning,” said Rep. Nadeau, in an interview with MPR News earlier this week, discussing how the bill will evolve as it moves through the legislature.
Rep. Aisha Gomez, DFL-Minneapolis, co-chair of the committee, said in a statement before the hearing, “I’m proud that the House DFL is leading the way with a strong, workable, bipartisan, and permanent solution to this immense issue. While the precise details of the legislation will likely shift, as long as the House DFL has a say, we will not end this session until we have passed legislation that saves HCMC.”
A safety net hospital under strain
Hennepin Healthcare operates HCMC, which is both an adult and pediatric trauma center and a teaching hospital. The safety-net hospital provides care to more low-income and uninsured patients than any other facility in Minnesota. In 2025, HCMC saw nearly 115,000 patients from across the state, including over 100,000 emergency department visits each year, with many referred from rural and regional hospitals.
Due to a projected $50 million operating loss in 2026, the health system has already cut five medical programs, eliminated about 100 full-time positions, and reduced patient beds by 100, capping the total at 390.
But the financial situation extends beyond the shortfall. Like many hospitals in Minnesota, HCMC has struggled with budget constraints for years and is expected to face $1.7 billion in losses over the next decade due to rising uninsured rates in the state and changes to federal policy, including Medicaid cuts.
HCMC provides 20 percent of all uncompensated care in Minnesota, which refers to hospital services provided to patients without payment. Additionally, Hennepin Healthcare is owed more than $100 million from UCare, one of the largest health insurers in Minnesota, which closed it’s operations that last year.
Hennepin County Commissioner Jeffery Lunde, who chairs Hennepin Healthcare’s Hospital Board, told MPR News in February that the health system has reached a critical junction.
“If we do not get approval for the tax, HCMC will be closing. There isn't a question,” Lunde said. “We cannot raise Hennepin County property taxes to cover the gap.”
Workers and lawmakers push for action
Earlier this month, health care workers urged state elected officials to prioritize legislative solutions to protect HCMC from closing. HCMC staff members, nurses, residents and frontline workers, including paramedics and interpreters from across the Twin Cities, demanded that Minnesota lawmakers introduce bills to fund the hospital.
They said that failing to finance HCMC represents a “failure of how we choose to fund care in this state and across America," and without legislative action, underinsured and uninsured patients will face disproportionate impacts.
Rep. Agbaje, said in an interview with MPR News that she has been hearing from colleagues, both Republicans and Democrats, that they do not want the hospital to fail, so she expects this bill to progress.
Rep. John Huot, DFL-Apple Valley, participated in the committee discussion today. He emphasized the need for the legislature to consider a “bigger option”.
“I hate that we're depending on a ballpark tax because we all know in a recession, people don't go to the ballpark,” Huot said. So, I think this is a great bandage, but we need a trauma dressing.”
