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Many Minnesota hospital systems spent more on charity care during first full year of screening law

Seven nonprofit Minnesota hospital systems reversed prior declines by increasing charity care spending in fiscal year 2024, driven by new screening law and rising healthcare costs.

  • In the first full year after the law took effect, seven nonprofit systems including CentraCare Health, Essentia Health, and Mayo Clinic increased charity care spending between fiscal years 2023 and 2024.
  • Hospitals said the COVID-19 pandemic and Medicaid enrollment and renewal changes drove year-over-year charity care shifts, while the charity care screening law might have raised awareness and increased applications.
  • Adding staff to process applications, Essentia Health reported substantially more charity-care applications, increasing administrative costs, while Olmsted Medical Center proactively contacted more than 6,000 patients.
  • Hospitals reported the number of charity-care recipients rose only slightly because eligibility criteria remain unchanged, while the Minnesota Hospital Association warned charity care cannot fully meet need amid Medicaid cuts and attorney general probes into Mayo Clinic and Allina Health billing practices continue.
  • Experts cautioned that linking increased charity care spending to the Debt Fairness Act is premature, with Ge Bai saying `We don't have enough years` for conclusive data.
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Many Minnesota hospital systems spent more on charity care during first full year of screening law

ROCHESTER — In the first full year after Minnesota's charity care screening law took effect, many nonprofit hospital systems increased their charity care spending. A Post Bulletin analysis of nine hospital systems' federal tax documents found that seven increased their charity care spending between fiscal years 2023 and 2024: CentraCare Health, Essentia Health, Fairview Health Services, Hennepin Healthcare System, Mayo Clinic, Sanford Health and…

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Duluth News Tribune broke the news in Cherokee County, United States on Tuesday, January 27, 2026.
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