This bill aims to provide financial relief to hospitals and community-based safety net providers in Minnesota facing financial distress and high levels of uncompensated care. It amends Minnesota Statutes 2024, section 16A.103, by adding a subdivision that mandates the commissioner of management and budget, in consultation with the commissioner of health, to submit a report on the financial stability of Minnesota's hospitals with each November forecast. The bill establishes a Hospital Stabilization Program and a Community-Based Safety Net Provider Stabilization Program, which will offer financial assistance to qualifying entities based on their financial distress and episodes of uncompensated care. Additionally, it includes a stabilization grant program specifically for Hennepin Healthcare System, Inc., ensuring the continuation of essential services.

The legislation introduces new reporting requirements for the commissioner and legislative auditor regarding the financial stabilization of Hennepin Healthcare System, Inc., and hospitals statewide. By January 15, 2027, and annually until January 15, 2030, the commissioner must report on the financial status and provide recommendations for improvement, while the legislative auditor will assess compliance and the overall financial health of these entities. The bill also declares HCMC ineligible for payment under specific Minnesota Statutes for fiscal year 2027 and includes appropriations from the general fund for various health programs in fiscal year 2027, including the hospital stabilization program and a rural EMS uncompensated care pool payment program, with all appropriations designated as one-time funding allocations.

Statutes affected:
Introduction: 16A.103