Sales tax increase to save HCMC a nonstarter for many Republicans in tied Minnesota House

Both sides of the aisle in Minnesota agree the collapse of HCMC would be catastrophic. However, they do not agree on the prescription to save it. 

At a Minnesota House committee hearing on Tuesday, the DFL pitched increasing Hennepin County's 7.5% sales tax by 0.75%. The plan would raise more than $250 million for the critical trauma hospital, HCMC.

Republicans are not on board.

"There is no appetite for a tax increase. People can not afford it; people are barely struggling to stay in their homes with an 8% property tax increase this year on top of a 5.5% property tax last year. It's really a struggle, we cannot put this on property taxpayers," Republican Rep. Kristin Robbins said.

But DFL Rep. Esther Agjabe is optimistic.

"I believe we will come together on some type of solution for HCMC," Agjabe said.

The newly appointed Hennepin Healthcare CEO insists he, too, is optimistic, but admits, right now, he is just trying to keep staff from leaving. One doctor estimates 36% of HCMC doctors have already departed or could depart.

"We are seeing higher attrition rates than normal in the organization, and my role is to try and stabilize that staff," Hennepin Healthcare CEO Dr. John Cumming said.

Hospital leaders told state lawmakers earlier this year that there is a projected operating loss of $40 million to $50 million for this fiscal year. The change, state officials estimate, could bring in $337 million in extra funding per year. 

Last week, the Minnesota Senate passed $150 million in funding for HCMC, but it still needs approval from the House. The Minnesota House is currently tied and a tax increase appears to be a nonstarter for many Republicans.

The legislative session is set to end on May 18.