Robbinsdale, Minn.-based North Memorial Health's flagship Robbinsdale Hospital has projected $124 million in losses related to government programs in 2024 due to a financial crisis brought on by the payer mix in its service area, a spokesperson for North Memorial Health said in an Aug. 20 statement shared with Becker's.
At Robbinsdale Hospital, 74% of patients are covered by Medicaid and Medicare programs, meaning that for 74% of patients seen, the hospital is reimbursed only around 70 cents to the dollar for patient care costs.
In March, the system laid off 103 employees in both clinical and nonclinical roles due to ongoing financial struggles.
"We will relentlessly pursue performance improvement initiatives, along with county, state and federal funding to offset our continued losses at Robbinsdale Hospital," the spokesperson said. "Our plan is to continue the momentum we gained during the 2024 legislative session and build on the awareness created around our current financial challenges before the 2025 legislative session."
In addition to Robbinsdale Hospital, North Memorial Health comprises Maple Grove (Minn.) Hospital, 24 specialty and primary care clinics, medical transportation services, and urgent and emergency care offerings. The health system has more than 350 providers and over 6,000 employees, according to its website.
The system plans to continue pursuing "a long-term funding commitment" to help offset the amount of patients at Robbinsdale Hospital who are on government programs.