Minneapolis Health Brief: HCMC funding fight, Medicaid payment pause, and measles update
Minneapolis, MN – February 28, 2026 – HCMC funding talks intensify as Medicaid payments are delayed and Minnesota’s measles count hits 10 statewide.
Minneapolis’ largest safety-net hospital is at the center of several fast-moving health policy developments this week, from emergency financing discussions to new uncertainty around Medicaid dollars and a rising measles count in the Twin Cities area.
Hospital access watch: HCMC warns of closure risk
Hennepin County Medical Center (HCMC) and the broader Hennepin Healthcare system say ongoing losses are driving urgent talks at the state Capitol over how to stabilize the hospital’s finances. FOX 9 reported that county leaders are asking lawmakers to redirect sales tax revenue tied to Target Field debt payments to help support hospital operations.
According to FOX 9, officials said HCMC lost more than $100 million in 2024 while continuing to treat large numbers of patients who cannot pay, and leaders also cited significant unpaid balances from an insurer. The system has already cut programs and jobs and reduced costs, and Commissioner Jeffrey Lunde told FOX 9 that the county has been covering payroll as the situation worsens.
In a separate FOX 9 update, state Sen. Alice Mann warned that shutting down HCMC would push more patients to other emergency rooms and could lead to worse outcomes for people needing time-sensitive care.
Health insurance impact: federal Medicaid payments delayed
Another pressure point is Medicaid funding. FOX 9 reported that Vice President J.D. Vance and Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz announced a pause delaying $259.5 million in Medicaid funding to Minnesota, citing fraud concerns.
Minnesota’s Department of Human Services said it has been notified of the deferral and is appealing a separate federal plan to withhold $2 billion in annual Medicaid funding, according to FOX 9. Human Services Commissioner Shireen Gandhi said the deferral could harm the state’s health care infrastructure and the 1.2 million Minnesotans who rely on Medicaid.
Outbreak update: measles count climbs in 2026
Minnesota’s measles tally is also moving upward. An Associated Press report republished by Red Lake Nation News said Minnesota has reported 10 measles cases so far in 2026, describing the increase as happening amid declining vaccination rates.
The report said all 10 people were diagnosed after being infected within the United States, based on an updated count from the Minnesota Department of Health. It also noted Minnesota reported 26 measles infections in total last year, and quoted state epidemiologist Jayne Griffith saying measles activity is elevated nationally.
Sources
https://www.fox9.com/news/hcmc-risk-closure-without-state-aid.amp
https://www.fox9.com/news/hcmc-closure-would-cause-patient-deaths-feb-27-2026
https://www.fox9.com/news/jd-vance-medicaid-funding-pause-fraud-minnesota-feb-25/
https://www.redlakenationnews.com/story/2026/02/27/news/ten-cases-of-measles-already-reported-in-minnesota-this-year/138541.html
