Item Description:
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Approval of the 2026 Hennepin Healthcare System, Inc. Financial Plan
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Resolution:
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BE IT RESOLVED, that the Hennepin County Board of Commissioners approves the 2026 Hennepin Healthcare System, Inc., Financial Plan, including operational and capital budgets, as submitted.
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Background:
Under Minnesota Statutes § 383B.908, the Hennepin County Board of Commissioners has certain reserved powers over Hennepin Healthcare System, Inc. (HHS), one of which is the power to approve the corporation’s annual budget. On October 22, 2025, the 2026 HHS operational and capital budgets were approved by the HHS Finance and Operations Committee of the Board of Directors. Thereafter, it was again reviewed by HHS Board on November 18, 2025, and is recommended to the Hennepin County Board of Commissioners for final approval.
HHS’s 2026 budget includes Hennepin Healthcare, Hennepin Healthcare Research Institute, and Hennepin Healthcare Foundation.
The organization is focused on aligning resources to mission, vision, and values as well as assuring quality of and access to care. To achieve this as well as financial vitality, initiatives include increasing access and throughput in the operating, therapy and inpatient areas, continued staffing optimization and elimination of health disparities, as well as compensation considerations.
The HHS 2026 budget anticipates providing approximately 139,000 days of hospitalized care to 19,000 patients discharged from inpatient care. Additionally, patients will receive care through 880,000 outpatient services. This includes approximately 12,000 patients treated in HHS operating rooms and 95,000 seen in the emergency department.
The 2026 budget anticipates spending $1.65 billion and generating $1.65 billion in revenues, resulting in a break-even operating margin.
The HHS budget includes value of $38.0 million for payments HHS receives from the County pursuant to the Uncompensated Care Formula.
Current Request: This request seeks approval for the 2026 Hennepin Healthcare System, Inc., Financial Plan, including the operational and capital budgets.
recommendation
Recommendation from County Administrator: Recommend Approval