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County says federal changes could cost Hennepin Healthcare $1.7 billion over 2027–2038
Summary
County staff told commissioners an estimated $1.7 billion impact to Hennepin Healthcare could result from federal changes (HR1), and county clinics may face roughly $27 million in Medicaid-related losses; commissioners called for planning to preserve services.
County finance staff told the committee that federal policy changes tied to HR1 will have long-term fiscal effects for health services delivered or supported by the county. "For Hennepin Healthcare System, including HCMC, their total estimated impact from HR1 is 1,700,000,000 from 2027 through 2038," Joe Matthews said. He added that county clinics — named examples included NorthPoint and Red Door — face an estimated $27,000,000 in losses, though he cautioned figures may fluctuate as implementation details become clearer.
Commissioners stressed the difficulty of restarting services once they close. Commissioner Fernando said Hennepin serves a disproportionate share of the state's social-safety-net clients and urged the county to seek dedicated revenue for health rather than relying on cuts. The administration said it is coordinating with the hospital and participating in planning with a state task force addressing ownership, governance and financing.
