Hennepin County commissioners voted 6-1 Tuesday to retake control of the nonprofit that runs HCMC and its clinics after years of budget problems, moving to prevent a closure of the safety-net hospital in downtown Minneapolis.
The controversial move dissolves the Hennepin Healthcare System board of community volunteers created in 2007 to oversee the hospital’s day-to-day operations.
The health system has lost money on operations seven of the last eight years, and some hospital officials suggested in June it may need to drastically reduce services or even close. Now, the commissioners and county staff will oversee operations at the state’s largest publicly funded hospital and its $1.6 billion annual budget.
“We don’t have time to lose here. We are in trouble. I won’t let this hospital close,” said Commissioner Angela Conley.
Hospital board members fought their removal, saying it will silence a diverse group advocating for patients who are primarily people of color. Board members have argued the hospital faces unprecedented fiscal challenges but does not have a governance problem.
“Our governance has changed, but our mission to support the most vulnerable in our community remains the same,” Dr. Tom Klemond, interim CEO, said in a statement Tuesday. “We will work closely with [commissioners] on a transition plan that best supports and preserves the vital work that we do, and centers patient care at every turn.”
The takeover is supported by many hospital workers who have criticized leadership’s financial management and said they have not addressed a variety of employees’ concerns.
Commissioner Heather Edelson was the lone vote against the takeover, saying she supported the move, but wanted to put a timeline in place for re-establishing the community board. Instead of a timeline, the commissioners agreed to provide an update on their work to stabilize the health systems finances by July 2026.
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