Federal Budget Bill Could ‘Devastate’ North Memorial Health Hospital

Federal Budget Bill Could ‘Devastate’ North Memorial Health Hospital

The One Big Beautiful Bill Act that was approved by Congress and signed into law by President Trump last week could potentially have a devastating impact on North Memorial Health Hospital in Robbinsdale, officials said Thursday.

“This legislation is going to devastate the ability for North Memorial to stay afloat, and it might actually lead to the closing of crucial programs,” said U.S. Rep. Ilhan Omar, D-Minnesota.

Omar held a news conference at a Minneapolis food shelf Thursday morning to give her views on the federal legislation.

She says it will kick 17 million Americans off their health care plans, including thousands in Minnesota’s 5th Congressional District. The White House disputes those claims.

U.S. Rep. Ilhan Omar, D-Minnesota, was at the Sabathani Community Center in Minneapolis to share her thoughts on the One Big Beautiful Bill Act.

Omar said Medicaid reimbursement changes will prevent people from seeking preventive care and force them to seek emergency care when they’re sick. Hospitals like North Memorial, Omar said, will have to eat the cost of those visits because they won’t have access to Medicaid reimbursement.

“One of the things North Memorial was looking forward to was getting a direct support from Medicaid, just like HCMC gets, and that right now is out the door. That’s not going to be something that will be available to them,” said Omar. “I am really, extremely concerned about the sustainability and survival, of not just the services at North Memorial that people rely on, but its existence, being intact for the years to come.”

Last year, North Memorial CEO Trevor Sawallish said the impact from un-reimbursed and under-reimbursed care was projected to reach $100 million this year.

Update: North Memorial Health provided CCX News with a statement on July 11.

North Memorial Health Statement:

We appreciate Rep. Omar’s advocacy for North Memorial Health, alongside many other policymakers, business, community and faith leaders. North Memorial Health has been a critical part of Minnesota’s health care system for more than 70 years. We’ve been public about the serious financial challenges we are facing. While we’re encouraged that Minnesota’s application for the federal Directed Payments Program was submitted for funding, we are still working to understand how the new legislation will affect our organization.

What we know is this: Our system is already under great financial strain. Help is needed to ensure we can be here for those that depend on us for great care. Anything that affects the funding that we are asking for, or makes deeper cuts to Medicare or Medicaid, will mean cuts and service adjustments that impact healthcare across the state of Minnesota.

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SOURCE: CCX MEDIA