ROBBINSDALE, Minn. — North Memorial Health's flagship hospital towers over Robbinsdale and North Minneapolis, treating some of the most critical patients as one of the state's few Level 1 Trauma Centers.
However, after seven decades of operating in the Twin Cities, North leaders are sounding the alarm about the Robbinsdale hospital's current funding crisis.
In an interview, President and Chief Medical Officer Dr. Carolyn Ogland said North is losing roughly $124 million annually due to a growing number of patients using government insurance. With about 70 percent of the hospital's patients using programs like Medicare or Medicaid, North receives far less money in return compared to hospitals that have a larger share of patients on private insurance.
"Our reimbursement is quite low, about 70 cents for every dollar it costs us to provide care for these patients," Ogland said. "That equation doesn't work long-term."
In March, under financial duress, North Memorial announced cuts to mental health and neonatal intensive care services at the Robbinsdale location, along with more than 100 layoffs.
The Minnesota Nurses Association held a rally to protest North's decision, accusing the hospital of making "callous cuts" as a result of "corporate greed." In a statement, the organization said: "When hospital executives plead poverty, it is not for lack of millions in revenues made from patient bills and medical debts that climb higher every year. It is a question of priorities."
Ogland defended the cuts as difficult but necessary.
"Those were very tough decisions to make," Dr. Ogland said. "But we did that in order to keep our stability for the rest of the organization."
This spring, around the time of the cuts and layoffs, North Memorial also went to the legislature with a funding request. The hospital wanted to obtain federal dollars through the Medicaid Directed Payment program and needed state action to make that happen.
One bipartisan bill, led by DFL Senator Ann Rest, aimed to unlock federal funding for North through a complicated process involving local, state and federal governments. According to Rest, the proposal involved transferring $20 million from Hennepin County to the state through ballpark tax revenue, which could then lead to a federal funding match similar to one that Hennepin Healthcare already has.
The legislative session ended without any action on that proposal.
Senator Jim Abeler (R-Anoka), who crossed party lines to support the legislation, said the funding was critical for North's viability.
"They needed some help. The federal government had a program if you can get a local match, we can get you some federal money. For reasons I can't imagine, it fell off the rails," Abeler said. "North Memorial is one of the ones at most risk if they can't get extra money, to stay open and serve their most needy population."
Abeler said he fears North may not survive without a boost in funding.
"Absolutely. They've already closed some programs. You can't pay for programs on love and good intentions. You need the money to pay the nurses, the doctors, and all the technicians and staff," Abeler said. "This wasn't a partisan thing. But it became a political thing about priorities."
Dr. Ogland said the hospital plans to go back to the legislature next session with the same request.
The hospital is also continuing to have conversations with Hennepin County after commissioners voted this winter to terminate $24 million in funding to assist North's neediest patients.
"We want to be here. I think we're a vital service for Robbinsdale, and actually all of Hennepin County," Ogland said. "So I would ask for your help, and I hope we get that funding in the next round."