Minnesota hospitals could lose $1 billion due to federal policy changes, association says

Minnesota hospitals could face dire consequences due to federal health care policy changes, including losses of $1 billion annually and a potential reduction in services, officials representing hospitals said Wednesday.

Mary Krinkie, vice president of government relations at Minnesota Hospital Association, told a Minnesota Senate panel focused on federal impacts on the state's residents that 40% of hospitals had negative operating margins last year.

But more hits could be on the horizon. Hospitals are poised to lose more than $620 million a year if 140,000 Minnesotans are no longer eligible for Medicaid as is estimated in 2027 when Medicaid changes in the "big, beautiful bill" take effect. That figure accounts for additional charity care and lost Medicaid payments.

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