North Memorial in Robbinsdale plans cuts to mental health programs, neonatal intensive care units
ROBBINSDALE, Minn. — One of the metro's largest hospitals is going through big changes.
North Memorial Health in Robbinsdale says it's closing its outpatient mental health programs, and two neonatal intensive care units, leaving more than 100 employees without a job.
The CEO says it is a sign of the times, but the nurses union says it's a sign of hospitals putting resources into more upscale and profitable communities.
The changes will force 3,400 patients to find new providers. Administrators say 75% of their patients depend on government subsidies at a time when those subsidies aren't adding up.
MORE: Western Minnesota goat tests positive for bird flu; first case of its kind in US history
"Given the fact that costs of health care continue to go up so quickly and government payment does not respond as quickly as those costs are going up, it really truly is a breaking point for us," said CEO of North Memorial Trevor Swallish at Monday's Maple Grove City Council meeting.
North Memorial says it is also struggling in the aftermath of another big hit. Earlier this year the Hennepin County Commission eliminated the hospital's $22 million subsidy. Commissioners noted rising expenses at North and also at Hennepin Healthcare, the county's main hospital.
The Minnesota Nurses union fired back, accusing North of choosing to invest in facilities in wealthier communities.
"These closures by North Memorial executives follow a clear pattern: close services that do not make enough money – especially birth and newborn care and mental health – in the most at-need communities who cannot afford to pay more and who lack easy access to alternative options for care," said the Minnesota Nurses Association in a statement.
Swallish said at the city council meeting that expansion plans at Maple Grove have to be paused.
"Until we solve this problem for our overall economics, particularly until we solve this problem for Robbisndale those plans are going to be on hold," he said.
The cuts are expected to go into place by Aug. 30.
North Memorial is asking the Minnesota legislature to allow the hospital to participate in a direct Medicaid reimbursement program, to help them pay their bills.
