Winona Health reports $12M loss as rural healthcare faces dire financial challenges

The Minnesota Senate's Committee on Health and Human Services convened on April 9, 2025, to address pressing issues affecting rural healthcare and autism services in the state. Key discussions highlighted the financial struggles faced by rural hospitals, the need for adequate autism support, and the importance of funding for health insurance navigators.

During the meeting, representatives from Winona Health expressed grave concerns about the financial viability of rural hospitals. The hospital reported a staggering loss of $17 million in 2023, which was slightly reduced to $12 million in 2024. The hospital's leadership emphasized that ongoing financial challenges stem from a high reliance on government programs like Medicare and Medicaid, which do not adequately cover service costs. They opposed a proposed bill provision that would prevent hospitals from billing for facility fees, arguing that such a move could jeopardize access to essential outpatient services in rural communities.

In another segment, advocates for autism services raised alarms about the increasing rates of autism in Minnesota, particularly among Somali children. They urged the committee to ensure that families and agencies involved in autism care have a voice in legislative discussions. The advocates stressed the urgency of addressing the growing demand for autism services, warning that failure to act could lead to unsustainable costs for the state.

Additionally, representatives from Portico Health Net, Minnesota's largest nonprofit health care navigator organization, voiced opposition to the proposed cancellation of $800,000 in grants for navigator organizations. They argued that these funds are crucial for supporting communities in accessing health insurance and healthcare services, especially as demand continues to rise.

The meeting underscored the critical need for legislative support to address the financial and service delivery challenges faced by rural healthcare providers and the urgent need for autism services in Minnesota. As the committee continues its discussions, the implications of these issues will be closely monitored by stakeholders across the state.