Hennepin Healthcare cuts 100 in-patient beds amid financial crisis

Minneapolis hospital freezes spending and pauses employee benefits to reduce costs

Published on Feb. 12, 2026

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Hennepin Healthcare, a major hospital system in Minneapolis, has announced it will remove 100 in-patient beds as it deals with an ongoing financial crisis. The hospital is also freezing discretionary spending and pausing certain employee benefits in an effort to cut costs. Hennepin Healthcare previously laid off 100 employees and eliminated some services like acupuncture and chiropractic care.

Why it matters

Hennepin Healthcare is one of the largest healthcare providers in the Minneapolis area, serving a diverse patient population. The reduction in beds and services could impact access to care for many in the community, especially lower-income and underserved patients who rely on the hospital. The financial challenges also raise concerns about the long-term sustainability of the healthcare system.

The details

Hennepin Healthcare cited fewer patients and a lack of federal Medicaid funding as the primary drivers of its financial crisis. After removing the 100 beds, the hospital will have 390 beds remaining. In addition to the bed reductions, Hennepin Healthcare is freezing discretionary spending and pausing certain employee benefits in an effort to cut costs and "align resources with current demand."

  • On February 12, 2026, Hennepin Healthcare announced it would remove 100 in-patient beds.
  • Nearly three weeks ago, Hennepin Healthcare laid off 100 employees and cut some programs, including acupuncture, sleep and chiropractic services.

The players

Hennepin Healthcare

A major hospital system in Minneapolis that provides healthcare services to a diverse patient population.

Dr. J. Kevin Croston

The co-administrator of Hennepin Healthcare, who stated the financial crisis is due to fewer patients and a lack of federal Medicaid funding.

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What they’re saying

“This adjustment is part of a broader effort to align resources with current demand and improve staff utilization. These actions are focused on sustaining critical patient services and ensuring we continue to prioritize care.”

— Hennepin Healthcare's media manager (kare11.com)

The takeaway

The financial challenges facing Hennepin Healthcare raise concerns about the long-term sustainability of the healthcare system in Minneapolis, particularly for lower-income and underserved patients who rely on the hospital's services. The reduction in beds and services could significantly impact access to care in the community.