Minneapolis health brief: HCMC funding fight, Medicaid pause, and measles uptick
Minneapolis, MN – March 2, 2026 – HCMC funding talks intensify as lawmakers weigh a sales-tax fix; Minnesota measles count rises; Medicaid funds pause.
Minneapolis health leaders are warning that the region’s main safety-net hospital system is facing an escalating funding crunch, as Minnesota also tracks a new measles increase and a major Medicaid payment pause.
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HCMC funding push moves to the Capitol
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Recent hearings and briefings have focused on Hennepin Healthcare, which runs Hennepin County Medical Center (HCMC) and clinics across the metro. County and hospital leaders say ongoing losses tied to uncompensated care have pushed the system into a precarious position, with some officials publicly raising the possibility of a shutdown if new revenue is not approved.
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In testimony and interviews, leaders outlined a proposal to redirect or expand a local sales tax now associated with Target Field debt to stabilize hospital finances. FOX 9 reported that county leaders are seeking state approval to use that sales tax revenue to keep HCMC operating, with one state senator warning that closure would strain emergency rooms across the region. The report also said the decision could become clearer by May, and that a closure process—if started—could take 12 to 18 months.
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WCCO Radio separately reported that Hennepin Healthcare officials said they have already cut $50 million from the budget this year and described another $150 million in reductions still to be identified. The Minneapolis Times reported a $200 million gap and said officials told lawmakers they must find $50 million in savings by the end of March and $150 million more by the fall.
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Medicaid funds paused amid fraud concerns
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On the state financing side, the Associated Press reported that the federal government will temporarily withhold $259.5 million in Medicaid funding from Minnesota, citing fraud concerns. The report said federal officials want a corrective plan within 60 days and warned the deferrals could grow if requirements are not met, while Minnesota leaders criticized the move.
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Outbreak watch: Minnesota measles count rises
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CBS Minnesota reported Feb. 26 that the Minnesota Department of Health logged 10 reported measles cases so far in 2026—double the total from the prior update on Feb. 19. The health department said all 10 cases were tied to exposure within the U.S.; the earlier five cases were in the Twin Cities, and at least four were linked. The story also cited CDC national totals as of Feb. 19 and noted hospitalizations associated with cases nationwide.
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City advances public safety training and wellness center
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The City of Minneapolis announced it has signed a letter of intent to purchase an industrial property at 146 W. 60th St. for a proposed Community Safety Training & Wellness Center. The city said the project is intended to consolidate training and wellness resources for departments including 911, Behavioral Crisis Response, emergency management, fire, neighborhood safety and police, with an estimated total project request of $38 million.
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Sources
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https://www.fox9.com/news/hcmc-closure-would-cause-patient-deaths-feb-27-2026.amp
nhttps://www.audacy.com/wccoradio/news/local/hennepin-healthcare-says-need-one-cent-sales-tax-stay-open
nhttps://minneapolistimes.com/hennepin-county-warns-of-potential-hcmc-closure-amid-200-million-shortfall/
nhttps://apnews.com/article/47b160fd664cdfeef355ae00ca5fecc0
nhttps://www.cbsnews.com/amp/minnesota/news/minnesotas-measles-cases-double-in-a-week/
nhttps://www.minneapolismn.gov/news/2026/february/wellness-center/
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If you have urgent symptoms, seek medical care. For general questions, talk with a licensed clinician.
