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Robbinsdale Today
By the People, for the People
North Memorial Hospital Faces Mounting Losses, Seeks Financial Help
CEO says the Robbinsdale hospital lost $50 million in 2025 and needs support like HCMC to remain viable.
Apr. 8, 2026 at 2:55am
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An X-ray view of the fragile infrastructure supporting Minnesota's critical healthcare institutions.Robbinsdale TodayNorth Memorial Hospital, a level one trauma center in Robbinsdale, Minnesota, is facing significant financial challenges, having lost $50 million in 2025. Like the Hennepin County Medical Center (HCMC), North Memorial serves a high volume of emergency room patients, with 75% covered by government programs. The hospital's CEO, Trevor Sawallish, says the facility can no longer cut its way out of the problem and is supporting a proposed Hennepin County sales tax increase that would provide around $24 million per year to North Memorial. However, Sawallish believes even that may not be enough to ensure the long-term sustainability of the healthcare system in the Twin Cities region.
Why it matters
North Memorial's financial struggles mirror those of HCMC, another major safety-net hospital in the area. The potential closure of either facility would have significant implications for the entire regional healthcare system, as the remaining hospitals would be unable to absorb the doubled patient volumes. This highlights the broader challenges facing Minnesota's healthcare infrastructure and the need for innovative solutions to support these critical community institutions.
The details
North Memorial Hospital, like HCMC, serves a high volume of emergency room patients, with 75% of its patients covered by government programs. The hospital lost $50 million in 2025 and has already had to lay off employees. CEO Trevor Sawallish says the hospital can no longer cut its way out of the problem and is supporting a proposed Hennepin County sales tax increase that would provide around $24 million per year to North Memorial. However, Sawallish believes even that may not be enough, as the Medicaid reimbursement gap is expected to widen further in 2027 due to federal changes. Sawallish suggests merging with HCMC and finding ways to make the healthcare system more efficient, but closing North Memorial is not an option as that would double HCMC's patient volume, which neither hospital is prepared to handle.
- In 2025, North Memorial Hospital lost $50 million.
- A bill was introduced in the Minnesota legislature on Tuesday to raise a Hennepin County sales tax by 1% to help support HCMC.
- The federal administration is expected to reshape Medicaid in 2027, including changing work requirements and eligibility restrictions, which is expected to further widen the Medicaid reimbursement gap.
The players
Trevor Sawallish
The CEO of North Memorial Health, who says the hospital lost $50 million in 2025 and can no longer cut its way out of the problem.
Hennepin County Medical Center (HCMC)
A level one trauma center in the Twin Cities region that is also facing significant financial challenges and is pushing for a county sales tax increase to help keep the hospital afloat.
What they’re saying
“You used to be able to look and say, 'there are some bad things coming and some good things coming.' Now, there aren't many things we can look to and say, 'that's a net positive for what's coming.'”
— Trevor Sawallish, CEO, North Memorial Health
“The problem has gotten so substantial, we just can't cut ourselves out of this problem.”
— Trevor Sawallish, CEO, North Memorial Health
“Even if we get the tax, that's not going to be enough to make sure we have a sustainable health system for the Twin Cities, the state, for the region. It's going to take investment to create new ways of doing things in healthcare and it's incredibly challenging when you're already weak financially.”
— Trevor Sawallish, CEO, North Memorial Health
What’s next
If the Hennepin County sales tax increase is passed by lawmakers, North Memorial would receive around $24 million per year. However, CEO Trevor Sawallish believes even that may not be enough to ensure the long-term sustainability of the healthcare system in the Twin Cities region.
The takeaway
North Memorial Hospital's financial struggles mirror those of HCMC, another major safety-net hospital in the area. The potential closure of either facility would have significant implications for the entire regional healthcare system, highlighting the broader challenges facing Minnesota's healthcare infrastructure and the need for innovative solutions to support these critical community institutions.
