Minnesota Hospitals Warn Federal Medicaid Cuts Will Deepen Crisis
The Minnesota Hospital Association released a report Tuesday, "A Statewide Crisis of Care," warning that federal Medicaid provisions in the One Big Beautiful Bill Act will worsen already strained hospital finances. Minnesota hospitals saw record emergency department volume in 2024, with more than a quarter losing money on operations that year. The state's Department of Human Services estimates OBBBA provider tax reductions could cost hospitals $1 billion annually, and the law is projected to cut Minnesota's Medicaid rolls by 140,000 people due to new work requirements, raising uncompensated care costs. Hospital executives previewed a contentious 2027 legislative budget fight and called for protecting the 340B drug discount program, while blaming insurers and pharmaceutical companies for rising costs.