ROBINSDALE, MN — One of the metro's largest hospitals is undergoing major changes.
North Memorial Health in Robbinsdale announced it would close its outpatient mental health program and two neonatal intensive care units, leaving more than 100 employees without jobs.
The CEO says it's a sign of the times, but the nurses' union argues it's a sign that hospitals are putting resources into more upscale, more profitable communities.
The change will result in 3,400 patients finding new health care providers. Administrators say 75% of patients rely on them at a time when government subsidies are scarce.
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“Healthcare costs continue to rise so rapidly that government payments are not responding as quickly as those costs are rising,” North Memorial CEO Trevor Swallish said in a Monday speech. “Given that fact, this is really, really breaking point.” Maple Grove City Council meeting.
North Memorial said the company is also struggling due to the impact of yet another big hit. Earlier this year, the Hennepin County Commission eliminated $22 million in grants to the hospital. Commissioners noted that costs have increased not only at North Hospital, but also at Hennepin Healthcare, the county's main hospital.
The Minnesota Nurses Union fired back, accusing North of choosing to invest in facilities in wealthy areas.
“These closures by North Memorial leaders follow a clear pattern: Services that don't generate enough revenue, especially maternity and newborn care, and mental health, cannot afford to pay more, and there are alternatives. “It is closing services in the neediest areas that don't have easy access to care options,” the Minnesota Nursing Association said in a statement.
Swallisch told the City Council that Maple Grove's expansion plans need to be paused.
“Until we resolve this issue across the economy, and until we resolve this issue in Robisondale in particular, these plans will be put on hold,” he said.
The cuts are expected to take effect by August 30th.
North Memorial is asking the Minnesota Legislature to allow the hospital to participate in Medicaid's direct reimbursement program to help pay for medical care.
