Hennepin County, Minn., has ended a contract with Robbinsdale, Minn.-based North Memorial Health that gave the health system $24 million annually for a program to help patients struggling to pay for medical bills, NBC affiliate KARE reported Jan. 11.
The contract was signed in 2023 and provided reimbursements to the system largely for people on Medicaid, Medicare and other government assistance programs, according to the report. The county committed $24 million both in 2023 and 2024 with the goal to "to obtain better outcomes for residents, reduce hospital bed stays, and reduce disparities."
North Memorial had the power to determine eligibility, but the contract allowed the county to terminate the agreement early, according to the report.
The county commissioners voted 4-1 to end the contract.
The system said it is disappointed by the board's decision and said in 2023 it lost more than $60 million in resources due to underfunding from Medicaid and Medicaid, which represent a growing percentage of patients, according to the report.
The termination gives the county $24 million it could use toward other healthcare purchases, and a spokesperson told the news outlet the board's decision was "in part to refocus on other strategies, including those within its existing hospital and clinic system, Hennepin Healthcare."