|
|
The work of a 2003 citizens task force, a 2004 citizens transition committee, and the 2005 Legislature has resulted in development of a new organizational model that will allow HCMC to remain a public hospital owned by Hennepin County and dedicated to its historic public mission.
What is a safety net hospital?
-National
Association of Public Hospitals -Scott Davies, MD, Chief of Internal Medicine
HCMC has a proud history of service, and today maintains a level of quality of care that is recognized nationally. But HCMC's ability to continue to excel was threatened as the business of health care changed and, as a department of Hennepin County, HCMC did not have the flexibility it needed to survive and thrive in a competitive hospital marketplace and maintain its core mission. Minnesota's hospitals and clinics serve a population that continues to grow, age, and become more diverse. People are using hospitals more, and consumers are more engaged when choosing where to get care and more demanding in their expectations. Hospitals today have to provide a level of customer service and amenities that match their high level of quality care. The Twin Cities today has several large not-for-profit hospital systems and other independent hospitals. Although there are similarities among the hospitals, there are mission, clinical service, and geographic distinctions that make HCMC unique, including:
For all Minnesota hospitals today, operating margins are thin. At the same time, human resources, technology, and supply costs are increasing faster than revenues, and investor-owned specialty enterprises are attracting patients away from hospitals. For HCMC, the challenges were compounded by the significant changes to how health care for the poor is unded. HCMC provides 18 percent of the uncompensated care in Minnesota, and 43 percent of its patient base is on Minnesota public programs. Since 1997, federal funding to HCMC has been reduced an estimated $40 million because of the federal Balanced Budget Act. Changes in
Minnesota public program funding are resulting in a loss of $35 million
in state funding from 2003 - 2005 due to eligibility changes, payment
rate reductions, program benefit reductions for patients, and medical
education cuts.
EXCELLENCE
CRITICAL CARE IN CRITICAL TIMES for Minnesota From preparing the community for biological, chemical, and other disasters, to providing Level 1 Trauma Care nd Intensive Care Units with outstanding patient outcomes, HCMC provides critical care in critical times for all Minnesotans. - Intensive Care Units with outstanding outcomes - Minnesota's largest Emergency Department and Level 1 Trauma Center - Training doctors
to serve Minnesota communities - Minnesota Poison Help System serves all of Minnesota - Emergency Medical Transport includes ground and air ambulances - Regional Hospital Resource Center for community disasters - Global Migration and Quarantine Facility for infectious threats
HCMC responds with careful planning toward a bright future In response to these serious threats, HCMC and its physician partners, Hennepin Faculty Associates (HFA), began joint strategic planning in 2002. National consultants McKinsey & Company assessed the situation ndconcluded that the economic forces against HCMC as currently structured were extraordinary and would lead to an operating deficit of $60 million by 2006. Similar situations are occurring for public hospitals across the country. In late 2003, HCMC and HFA launched
an aggressive operational improvement plan called Partners in
Care. While that plan is already resulting in some operational savings,
it was suggested by
the McKinsey and Company that a new operating model, with leadership provided
by a sole-purpose hospital board, would provide many of the tools needed
to make additional operational improvements that are essential to preserving
the mission of HCMC far into the future.
From 1963-2007, HCMC was owned and operated by Hennepin County, Minnesota and governed by the Hennepin County Board of Commissioners. A task force of Hennepin County citizens, appointed by the County Board in 2003 to evaluate options for HCMC, determined that a change in governance would be necessary to provide flexibility and operational autonomy for HCMC. A citizens committee appointed by the Hennepin County Board developed a proposal to strengthen the way Hennepin County Medical Center (HCMC) is governed. The committee held a series of community meetings in Minneapolis, Eden Prairie, Minnetonka and Brookly Center to talk about the current challenges facing HCMC, tline the proposed changes, and receive feedback. Legislation enabling formation of a new public corporation was approved by the legislature and on January 1, 2007, Hennepin Healthcare System, Inc. began operations. HCMC remains owned by Hennepin County and dedicated to its historic public mission. The Hennepin Healthcare System, Inc. board serves as the day-to-day board for HCMC, bringing the business, financial and health care management skills necessary to manage the challenges of competing for employees and patients within today's health care marketplace. The County Board retains ultimate strategic and financial control and continue to own the facilities. Across the country, public hospitals that have not reformed their business model have either become more nd more reliant on taxpayer funding, or seen their size, quality, and ability to fulfill their mission decline; in some cases resulting in complete closure of the hospitals. However, those hospitals that have reformed, especially those whose transformation have been made before the financial losses started to mount, have been able to not only continue their mission, but expand those services provided to their communities. Click here to link to Minnesota Statute 383B.901 — Creation of a County Subsidiary Corporation
QUESTIONS/FEEDBACK? Governance News Release Archive
|
- Services A-Z |
- Clinics |
- Specialty Centers |
- Providers |
- Contact Us |
- Search |
- Home
