Friday, April 3

HCMC leader resigns amid financial challenges and potential closure


Dr. J. Kevin Croston has resigned from his role as co-administrator at Hennepin Healthcare, just a few months after starting.

MINNEAPOLIS — The leader of Hennepin Healthcare has resigned, effective immediately, as the hospital system deals with significant financial challenges. 

Dr. J. Kevin Croston took on the role of co-administrator this past January, with leaders saying this job was temporary. The other co-administrator, David J. Hough, remains as the leader of HCMC. 

This news comes as HCMC faces dire financial problems that may result in its closure. As KARE 11 has reported, roughly 100 positions and several services have been cut, and by the end of the year, they will need to cut another $100-150 million. Hennepin County has been helping the hospital that mostly serves low-income patients make payroll. 

Related: Hennepin Healthcare leaders seek state support with HCMC facing steep operating losses

The hospital projects up to $50 million in operating losses in 2026 and potentially as much as $1.7 billion in losses over the next decade, due to a complicated mix of factors including the rise in uninsured patients, federal changes to Medicaid eligibility through the One Big Beautiful Bill and the shutdown of major insurer UCare. 

Hennepin Healthcare Board Chair Jeffrey Lunde thanked Dr. Croston for his help in stabilizing HCMC. 

“Dr. Croston stepped into this temporary leadership role at a critical moment, helping guide an initial response to the organization’s urgent financial challenges. His leadership helped position Hennepin Healthcare for the work ahead and reinforced our commitment to preserving access to essential care. Hennepin Healthcare remains focused on securing legislative approval for a 1% sales tax in Hennepin County to continue to serve as a critical safety-net provider for all Minnesotans. The Board will continue working closely with leadership, staff, and state partners to advance this effort,” Lunde said in the statement. 

Minneapolis city spokesperson Jess Olstad said the city is hopeful a solution can be found to preserve the future of HCMC.

“HCMC is a vital healthcare provider not just for Minneapolis, but for all communities across Minnesota,” Olstad said. “As the state’s busiest emergency department and only Level 1 Trauma Center in the area, its loss would eliminate a critical access point to medical care and have far-reaching impacts on health outcomes—especially for low-income communities. We hope the County and State can secure an ongoing, sustainable funding solution to preserve Hennepin Healthcare System as a core safety net provider and the largest employer in downtown.”



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