SF5199

Purpose

• Establishes the Hennepin Healthcare Future Structure and Governance Advisory Task Force to develop recommendations for the legislature about the future ownership, governance, and financing of Hennepin Healthcare System Inc., including its integrated system of health care facilities and services such as Hennepin County Medical Center (HCMC).
• Requires the task force to recognize HCMC as a regional and statewide public health and public safety asset that provides important services (Level I trauma care, hyperbaric medicine for burns and complex wounds, comprehensive cancer care, and poison control) and supports education and training of health care professionals in Minnesota.

Main Provisions

• Subd.1 Establishment and scope

  • Creates the advisory task force to study and propose options for the future ownership, governance, and financing of Hennepin Healthcare, including its facilities and services.

• Subd.2 Leadership composition

  • The task force will have 14 members appointed by the governor.
  • Members must include:
  • 1 with health care sector leadership and state public health system experience
  • 3 with hospital and clinical system operations experience (especially safety net care)
  • 3 with health care finance and public health insurance programs experience
  • 2 with public sector governance/public authorities experience
  • 3 representing the health care sector workforce
  • 2 representing patient and community perspectives, especially from communities with limited health care access

• Subd.2 Appointment timing

  • Governor must appoint members by August 1, 2026.
  • Appointed members serve until the task force ends.

• Subd.3 Organization and meetings

  • The chair will be one of the appointed members.
  • The chair must hold the first meeting by September 1, 2026.
  • The task force must meet at least once each month (more if the chair calls it).
  • Members do not receive pay but may be reimbursed for expenses.

• Subd.4 Duties and powers

  • Evaluate: 1) the current governance structure of Hennepin Healthcare 2) governance and ownership models used by similar hospital systems 3) financing and funding options for sustainable, long-term funding 4) public health stakeholders across Minnesota (cities, counties, health systems, labor groups, patient and community groups, state agencies, and experts)
  • Develop specific recommendations for ownership, governance, and sustainable funding, plus a plan and timeline for any transitions.
  • Consider a full range of possible ownership and governance models, including regional, multi-county, state, or public authority structures; ownership by Hennepin County is not required or limited.

• Subd.5 Administrative support

  • The commissioner of health must provide meeting space and administrative services.
  • State agencies must provide technical assistance when requested.

• Subd.6 Report

  • By February 15, 2027, the task force must report to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services, taxation, and state government.
  • The report must include:
  • Specific recommendations for ownership, governance, and sustainable long-term funding
  • A fiscal analysis of all recommendations
  • A timeline to implement the recommendations
  • Draft legislation needed to implement the recommendations

• Subd.7 Expiration

  • The task force expires on June 30, 2027, or when the required report is submitted, whichever is later.

Significant Changes to Existing Law

• Creates a new advisory task force focused on the future structure and funding of Hennepin Healthcare, with a defined membership, duties, and a concrete reporting deadline.
• Establishes a formal process to consider and compare various ownership and governance models (including regional or public authority options) and to propose sustainable funding strategies.
• Requires consultation with a wide range of stakeholders and a statutory reporting and potential drafting of legislation to implement recommended changes.

Timeline & Key Dates

• August 1, 2026: Governor must appoint the 14 task force members.
• September 1, 2026: First meeting deadline.
• February 15, 2027: Deadline to submit the final report and any draft legislation.
• June 30, 2027: Task force expiration (or later if the required report is submitted first).

Impact on Hennepin Healthcare

• Aims to guide the future ownership, governance, and financing of Hennepin Healthcare System Inc., including HCMC.
• Seeks to ensure HCMC remains a key public health and safety asset with continued access to critical services.
• Could lead to changes in how Hennepin Healthcare is owned or governed and how it is funded long term.

Relevant Terms - Hennepin Healthcare System Inc. - Hennepin County Medical Center (HCMC) - Level I trauma care - hyperbaric medicine - burns - complex wounds - comprehensive cancer care - poison control services - public health asset - public safety asset - ownership models - governance structures - financing/funding - sustainable long-term funding - regional ownership - multi-county ownership - state ownership - public authority ownership - safety net care - public sector governance - public health stakeholders - patient and community perspectives - communities disproportionately impacted by lack of access to health care - draft legislation - fiscal analysis - transitional planning