Item Description:
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Directing County Administrator to identify and retain a consultant to assist with recruiting and vetting candidates for reconstituted Hennepin Healthcare System board; and to engage the County’s consultant for finalizing a long-term capital planning strategy for county-owned real estate leased to Hennepin Healthcare System.
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Resolution:
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BE IT RESOLVED, the Hennepin County Board of Commissioners directs the County Administrator to identify a consultant to assist the County Board with recruiting and vetting candidates for the reconstituted Hennepin Healthcare System board, which may include engagement with community, patients, workforce, or other stakeholders as appropriate; and authorizes the County Administrator to take any necessary steps to identify such consultant, which may include soliciting proposals, and/or negotiating and executing an agreement; and
BE IT FURTHER RESOLVED, that Agreement PR00006978 with Cannon Design, Inc. to develop the Hennepin Healthcare System Facilities Planning Framework, be amended to extend the term through December 31, 2026.
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Background:
Based on recent legislative changes, the Hennepin County Board must reconstitute the HHS board by January 15, 2027. This will require the County Board to recruit and vet at least 9 external board members in the next several months. This resolution would authorize the County Administrator to take necessary actions to retain outside consulting expertise and assistance with recruiting and vetting candidates for appointment by the January 15 deadline.
This resolution also directs the County Administrator to re-engage with Cannon Design, Inc., on the Hennepin Healthcare System Facilities Framework and to extend the contract to December 2026. This work had been temporarily paused while the County and HHS pursued state funding support for Hennepin Healthcare.
As additional background on the legislative changes related to governance, in August 2025, through Resolution 25-0297 R1, the Hennepin County Board exercised its statutory reserved power to remove the entire corporate board of Hennepin Healthcare System, Inc. (HHS), and resume interim management of its subsidiary corporation HHS, including the Hennepin County Medical Center (HCMC). The County Board has served as the direct governing body of HHS since that time through the recent period of acute financial crisis.
In April 2026, the County Board held a public briefing related to HHS, which included an update on the County’s efforts to secure funding for HHS from the state. The briefing also included an update on the work in progress to review the governance of HHS, as directed by Resolution 25-0513. During the April public briefing, county staff outlined a proposed timeline for key governance actions, including:
• June 30: County Board receives report on HHS governance
• Q3 of 2026: County Board considers any actions to update bylaws and agreements with HHS
• Q4 of 2026 to Q1 of 2027: County Board recruit new members for HHS corporate board
The proposed timeline will change slightly because of the recent legislation. In May 2026, the Minnesota State Legislature passed a Health and Human Services bill, which included a provision authorizing $205 million in stabilization funding for HHS and an additional $500 million reserve account available through 2031. This state funding will provide key support to HHS to relieve its immediate financial crisis. The state legislation also directs the Hennepin County Board to “reconstitute the corporate board of Hennepin Healthcare System, Inc.” and “complete the transition of governance of [HHS] to the reconstituted corporate board” by January 15, 2027. See Conference Committee Report for S.F. No. 4612 at article 3, section 16 (2026 Minn. Legislature). This legislative deadline generally aligns with the timeline that was previously proposed to the County Board during its April briefing.
The state legislation also modified the statutory qualifications for HHS board members, with the relevant update stating:
“At least 75 percent of the board’s noncounty commissioner members must have expertise in hospital administration, finance, business management, law, or health equity, or have other experience relevant to the administration of a health system and safety net hospital, with a preference for members with experience working in an urban setting with diverse cultural communities. Up to 25 percent of the board’s noncounty commissioner members may represent urban, cultural, and ethnic perspectives of the population serviced by the corporation and the patient or consumer perspective.”
See Minnesota Statutes 383B.903, subdivision 4, as revised by Conference Committee Report for S.F. No. 4612 at article 3, section 8 (2026 Minn. Legislature).
Under Minnesota Statutes 383B.903, subdivision 1, the HHS corporate board consists of 11-15 members (including 2 county commissioners). As a result, the County Board has approximately 7 months to identify and appoint at least 9 external candidates who meet the recently updated statutory qualifications. As outlined above, this resolution would authorize a consultant to assist with this process, which may include engaging with community, patients, workers, and other stakeholders.
In addition, this resolution directs the County Administrator to re-engage with the county’s outside consultant, Cannon Design, Inc., on the Hennepin Healthcare System Facilities Framework and to extend the contract to December 2026. The 10-year Hennepin Healthcare System Facility Planning Framework includes future building scenarios that balance the needs and priorities of key departments and help decision-makers visualize the benefits, drawbacks, and costs of facility options and will assist county and hospital leaders to plan with maximum flexibility in mind. The framework will assist Hennepin County with strategic facilities decisions to address space needs of the system and its supportive functions and infrastructure.
This work is critically important because the County owns the real estate that comprises HHS’s campus, located in downtown Minneapolis, and occupying over 3.34 million square feet within eight city blocks. The hospital includes an adult and pediatric trauma center, critical burn center, emergency and inpatient psychiatric care, multiple inpatient units and clinics that provide care to people from the metro area and from across the state.
Many of the HHS buildings are over 50 years old and are past their useful lives. The current limitations in physical space hinder HHS’s ability to fully address all patient needs and hinders efficient healthcare delivery. In January 2025, after a request for proposal process, Hennepin County selected Cannon Design, Inc. to provide a 10-year Hennepin Healthcare System Facility Planning Framework for the downtown campus. This work was suspended in late 2025 as the County responded to HHS’s recent period of acute financial crisis, and will be re-started by this resolution.
As outlined above, the state has provided some short-term funding to relieve HHS’s financial crisis. The state legislation also created a new state advisory task force to evaluate the governance, ownership, and financing model that will provide long-term stability to HHS as a regional and statewide public health and public safety asset. The condition of HHS’s facilities are a key factor in its ability to provide critical health care services.
This request funds services that are: both mandated and core services
recommendation
Recommendation from County Administrator: Recommend Approval