4:53 p.m. Tuesday, March 19, 2024
North Memorial Health is sounding the alarm on the financial challenges facing the nonprofit health system, saying free care at Robbinsdale Hospital is at “breaking point.”
CEO Trevor Sawallish, who took over the leadership role last month, is appealing for county and state aid to cover losses. Sawallish said the impact of unreimbursed and underreimbursed care at North Memorial Health hospitals is projected to reach $100 million by 2025.
“Like many people in the health care industry today, we have some pretty serious financial challenges,” Sawalish said at Tuesday's Maple Grove City Council meeting. “North Korea is at a very critical crossroads.”
Saworisch provided the Maple Grove City Council with an update on its finances, as Robbinsdale's 353-bed hospital also impacts Maple Grove Hospital, which is also owned by North Memorial Health. Sawallish said without outside help, North Memorial Health will have to delay expansion plans at Maple Grove Hospital.
“We continue to plan. There are different versions of what it will look like,” Sawallish said. “But until we resolve this issue throughout the economy, and until we resolve this issue in Robbinsdale in particular, those plans are going to be put on hold.”
Expansion plans for Maple Grove Hospital have been discussed for several years. When the hospital first opened in 2009, it was designed for 25,000 visits per year. Currently, the number of patients has doubled.
Maple Grove Mayor Mark Stephenson agreed that a solution is needed, saying expansion is necessary for the city's growth.
“Everything on the west side of the river and north of downtown. [Minneapolis] These two hospitals are accommodating. And I think Congress needs to recognize that and help solve the problem,” Stephenson said.
Robbinsdale Hospital Financial Challenges
Saworish said about three out of four patients admitted to North Memorial Hospital in Robbinsdale receive some type of government assistance, which is above the state average. Robbinsdale Hospital is also a Level I Trauma Center, and his is one of only four in the state.
In 2022, there were more than 3,800 emergency admissions to North Memorial Health Hospital from the 15 poorest ZIP codes in Hennepin County. By comparison, Hennepin Healthcare, which operates the Ho Chi Minh City Level I Trauma Center in downtown Minneapolis, has about the same number of patients at more than 3,900.
But Saworisch said Hennepin County stopped funding Robbinsdale Hospital this year after receiving money from the county last year.
North Memorial Health lost $46 million in 2023 from uncompensated care, Saworish said. The hospital system announced it has committed $70 million to safety net care and received $24 million from the county.
Mr. Sawallish is pushing for the passage of House File 3943 and Senate File 3838, bills that would allow North Memorial Health to be included in the Medicaid Direct Payment Funding Program. The program requires local funding to leverage federal funds, which is why North Memorial is seeking county support.
“Government payments are not going to respond immediately because these costs are going up,” Sawallish said. “This is really, really a breaking point for us.”
Maple Grove | Robbinsdale
