Bill to modify governance of Hennepin Healthcare draws limited support

In early April, nurses asked the Hennepin County Board of Commissioners to dissolve the Hennepin Healthcare System board of directors and take over control of its flagship hospital.

“We need to maintain the stability of this organization,” Rep. Tina Liebling (DFL-Rochester) said Tuesday while introducing HF5442, and a comprehensive bill amendment, to the House Health Finance and Policy Committee. “Dissolving is a bridge too far.”

The bill would delineate how the county board could dissolve or reorganize the health care corporation, or remove the corporate board, to assume management of Hennepin County Medical Center.

With a two-thirds vote of its board, the county could dissolve the hospital board if the latter commits a crime, violates ethical and legal duties, or repeatedly fails to act in the best interests of the corporation.

The hearing was for informational purposes only. Introduced late in the legislative session, the bill could be attached to larger legislation should the Senate agree, Liebling said.  

Hennepin Healthcare System is a public corporation established in state statute. It is governed by a corporate board, of which two members are Hennepin County commissioners. Hennepin County Medical Center is a public safety net hospital whose services extend to low-income individuals. It also operates the state poison control hotline, is a teaching hospital, and is one of the top Level 1 trauma centers in the country.

The bill drew limited support from Hennepin Healthcare employees. Some stated that their health care, vacation, sick time, and tuition benefits have eroded while executive leadership compensation has grown. At the same time, patient care and safety has declined sharply, they said.

 “We felt like we had no option but to elevate our concerns to Hennepin County,” said Sara Franck, a dental assistant and president of American Federation of State, County, and Municipal Employees 2474, adding that she was opposed to the bill. “All of our efforts came to a head when we were told that we would be facing huge insurance increases as well as lose access to weight loss drugs our employer was strongly encouraging staff to use.”

They seek transparency and accountability on how public funds are spent, she said.

“We cannot support this bill as written” said Sam Erickson, vice president of Hennepin County Association of Paramedics and EMTs, adding it does not consider the experience and viewpoint of the frontline workers.

Letters of support were submitted by the chair of the Hennepin County Board of Commissioners, the CEO of the Hennepin Healthcare System, 17 of the hospital’s departments chairs, the Minnesota Hospital Association, and the Minnesota Medical Association.

“The concerns that have been raised … are real concerns, but are certainly not unique to Hennepin Healthcare,” said former Health Commissioner Jan Malcolm, who served on the initial hospital board.

Rep. Robert Bierman (DFL-Apple Valley) said the health care industry is experiencing many challenges. “There’s a lot of issues around hospitals right now. It’s a tough market. It’s a tough condition coming out of COVID.”