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Minnesota Weighs Sales Tax Hike and State Rescue Fund for Hennepin Healthcare

Two funding plans under review would channel new public money to Hennepin Healthcare.

Overview

  • Minnesota lawmakers are debating two main fixes for Hennepin Healthcare’s budget crisis, including a higher Hennepin County sales tax and a statewide hospital stabilization program.
  • A move to a 1% county sales tax would have generated $337 million last year, according to the Minnesota Department of Revenue.
  • A separate Senate bill would raise the county rate only to 0.25% to produce about $85 million a year, with set shares for Target Field upgrades, North Memorial trauma services, and HCMC.
  • The statewide plan would open aid to all hospitals and create a targeted stabilization grant for Hennepin Healthcare, with lawmakers also considering up to $150 million in one-time state grants.
  • Hennepin Healthcare reports more than $100 million a year in unpaid care and a $50 million deficit, and hospital leaders, including North Memorial’s CEO, warn trauma access will erode without fast public funding.