Minneapolis health brief: HCMC funding warning, Medicaid lawsuit, and measles cases

ByWeence

Minneapolis, MN – March 3, 2026 – HCMC leaders warn of closure risk, Minnesota sues over Medicaid payment deferral, and measles cases continue to rise.

Minneapolis-area healthcare leaders are again warning that finances and federal funding decisions could reshape access to care in 2026, as the metro also tracks a rise in measles cases statewide.

HCMC funding: leaders warn closure risk without new state-approved revenue

Hennepin County Medical Center (HCMC), part of Hennepin Healthcare, is facing what county leaders described as a critical financial situation, with warnings that the safety-net hospital could close without state action. FOX 9 reported that HCMC lost more than $100 million in 2024 and is owed $115 million by nonprofit insurer UCare, which stopped making payments as it winds down under state oversight.

County officials told lawmakers they want legislative approval to repurpose the county sales tax that was set up to pay Target Field construction debt. FOX 9 reported the Target Field tax generates about $55 million a year, while the county currently uses about $38 million annually in property taxes to help cover HCMC losses. The report also said Hennepin Healthcare cut five programs and about 100 employees in January to help close a $50 million budget gap, and that the county is currently covering the hospital’s payroll. Leaders said a shutdown process could begin as early as May if lawmakers do not act.

Health insurance funding: Minnesota files lawsuit over Medicaid payment deferral

In a separate development affecting Minneapolis clinics and hospitals that serve Medical Assistance (Minnesota’s Medicaid program), the Minnesota Attorney General’s Office said March 2 that the state and the Minnesota Department of Human Services filed a federal lawsuit to stop the federal government from withholding $243 million in Medicaid payments. The office said more than one million Minnesotans rely on Medicaid for health insurance.

The Minnesota Medical Association also described the federal action as a deferral of $259 million announced Feb. 25, and cited state officials’ warning that the move could harm the state’s healthcare infrastructure and Medicaid recipients if it continues.

Outbreak watch: measles count rises to 10 statewide, officials push vaccination messaging

The Minnesota Star Tribune reported that the Minnesota Department of Health’s updated count showed 10 measles cases in 2026 as of Feb. 26, with all cases diagnosed after infection within the United States. Minnesota Public Radio reported that a small outbreak that spread rapidly over about a week accounted for nine of those 10 cases.

Public health agencies typically recommend that people follow local guidance during infectious-disease investigations, especially around schools, childcare, and healthcare settings.

Sources

https://www.fox9.com/news/hcmc-risk-closure-without-state-aid/
https://www.ag.state.mn.us/Office/Communications/2026/03/03_Medicaid-Funding.asp
https://www.mnmed.org/news-and-publications/news/federal-government-holds-dollar-259m-medicaid-funding-minnesota
https://www.startribune.com/ten-cases-of-measles-already-reported-in-minnesota-this-year/601588448/
https://www.mprnews.org/story/2026/02/27/minnesota-measles-outbreak-has-officials-reupping-pushes-for-vaccinations

If you have urgent symptoms, seek medical care. For general questions, talk with a licensed clinician.

Brian 'Weence' Bateman is a seasoned medical and health writer with over a decade of experience in web development, search optimization, and social media for dentists and healthcare providers. His in-depth knowledge and dedication to the field are evident in the meticulously researched and informative content he produces.

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