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Walz adviser says Minnesota must reform ‘structural challenges’ in health care

Malcolm said structural changes are needed as HCMC seeks emergency funding after laying off 100 employees and losing nearly 5% of clinical staff since January.

  • On Tuesday, Jan Malcolm, Gov. Tim Walz's senior adviser on hospitals and health systems, told the Minnesota Senate Health and Human Services Committee that the state's health care system requires fundamental reform to address HCMC's financial crisis.
  • Hennepin County Medical Center, a Level 1 trauma center, faces potential closure without a financial lifeline this year, having already laid off 100 full-time employees and scaled back services due to uncompensated care.
  • Malcolm likened health financing to a "Jenga tower," warning against reactive funding, while Meghan Walsh, Hennepin Healthcare's chief academic officer, noted that nearly 5% of clinical staff have resigned since January.
  • Committee Chair Melissa Wiklund said language for a grant proposal to Hennepin County will be available later Tuesday, and the committee passed the Medical Assistance Protection Act, SF 2689, to strengthen the Minnesota Attorney General's Medicaid Fraud Control Unit.
  • While leaders discuss repurposing Target Field sales tax for HCMC, Sen. Jim Abeler signaled skepticism about the proposal's passage; Malcolm emphasized that any funding must address underlying business model challenges to succeed.
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Walz adviser says Minnesota must reform ‘structural challenges’ in health care

Jan Malcolm, former state health commissioner and Gov. Tim Walz’s new health care adviser, said Minnesota’s hospital leaders are describing the current health care model as “fundamentally broken.”

·Cherokee County, United States
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Duluth News Tribune broke the news in Cherokee County, United States on Tuesday, April 14, 2026.
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