>> ERIC: IT'S DEADLINE DAY AT THE CAPITOL, WHEN BILLS HAVE TO MAKE IT OUT OF COMMITTEE FOR A CHANCE TO BECOME LAW THIS YEAR.

WE'LL TALK WITH LEGISLATIVE LEADERS ABOUT WHAT MADE IT THROUGH A LITTLE LATER IN THE HOUR, PAUL DOUGLAS IS HERE WITH HIS NEARLY ANNUAL SEVERE WEATHER QUIZ, AND MARY LAHAMMER HAS AN INSIDE LOOK AT FORMER GOVERNOR VENTURA'S NEW CANNABIS BUSINESS.

>> Cathy: LIEUTENANT.

LIEUTENANT GOVERNOR PEGGY FLANAGAN WILL BE JOINING US IN JUST A FEW MINUTES.

WE'LL START WITH SMALL-TOWN HOSPITAL NEWS.

THE HOSPITAL IN MAHNONMEN, MINNESOTA, WILL NO LONGER HAVE BEDS AVAILABLE FOR PATIENTS TO STAY IN.

THE SMALL NORTHWEST MINNESOTA FACILITY IS CONVERTING TO WHAT IS CALLED A RURAL EMERGENCY HOSPITAL.

EMERGENCY SERVICES AND OBSERVATION CARE WILL BE AVAILABLE BUT THOSE SERVICES CANNOT EXCEED 24 HOURS ON AVERAGE.

MAHNOMEN IS THE FIRST COMMUNITY IN MINNESOTA FACING THIS CHANGE.

HERE WITH MORE, DR. RAHUL KORANNE HEADS UP THE MINNESOTA HOSPITAL ASSOCIATION.

NICE TO HAVE YOU IN STUDIO.

>> THANK YOU FOR HAVING ME.

>> Cathy: THIS IS AN INTERESTING STORY.

EMERGENCY HOSPITALS IN RURAL MINNESOTA -- WELL, THIS IS THE FIRST IN RURAL MINNESOTA.

WHAT HAPPENED TO MAHNOMEN IN ORDER TO TIP IT INTO THIS CATEGORY?

>> YOU KNOW, IT'S COMMENDABLE THAT THE LOCAL HOSPITAL IS TRYING TO KEEP SOME SERVICES ALIVE FOR ITS COMMUNITY.

WE ALL KNOW WHAT HIS COMMUNITY IS LIKE, LIKE O MANY OTHER RURAL COMMUNITIES, YOU KNOW, TRANSPORTATION STRUGGLES, YOU KNOW, FOLKS REALLY HAVING DIFFICULTY, YOU KNOW, GETTING ACCESS TO MEDICAL CARE.

SO IT'S COMMENDABLE THAT THE LEADERSHIP AND THE BOARD ARE KEEPING EMERGENCY SERVICES ALIVE.

HOWEVER, WHAT THIS BRINGS FORWARD IS THE TROUBLING TIMES THAT NOT-FOR-PROFIT HEALTHCARE IS IN HERE IN THE STATE OF MINNESOTA.

AND SINCE COVID AND POST COVID, I'VE CALLED IT A PERFECT STORM, I'VE CALLED IT A CONGLOMERATION OF CRISES, AND IT'S LIKE THE LIGHT ON THE CARD DASHBOARD TURNED ON LAST YEAR, SO WE'VE BEEN TALKING ABOUT IT FOR A YEAR, YEAR AND A HALF.

NOW THAT LIGHT IS FLASHING.

NOT FOR PROFIT HOSPITALS AND HEALTHCARE SYSTEMS IN THE STATE ARE IN DEEP TROUBLE.

THIS IS A SYMPTOM OF THAT.

>> Eric: IN A RURAL HOSPITAL, YOU HAVE A LOT OF MEDICARE, MEDICAID, WE CALL IT MEDICAL ASSISTANCE IN MINNESOTA, REIMBURSEMENTS FROM THE FEDERAL GOVERNMENT TO THE HOSPITAL.

IS THAT PART OF THE PROBLEM, I UNDERSTAND IT'S BEEN SEVERAL YEARS SINCE YOU'VE HAD, LIKE, AN INFLATION ADJUSTMENT TO THE REIMBURSEMENTS.

>> SO, ON AVERAGE, RIGHT NOW, 64% OF PATIENTS THAT ARE BEING SERVED BY OUR -- BY OUR HOSPITALS ACROSS THE STATE ARE GOVERNMENTAL INSURANCE, MEDICARE AND MEDICAID.

IN SOME COUNTIES, IN SOME HOSPITALS, THAT IS UP TO 70% OR 80%.

AND WHEN WE ADD UP THE NUMBERS, THESE ARE STUNNING LOSSES ON A YEAR-BY-YEAR BASIS.

YOU KNOW, IT'S $1 BILLION OF LOSSES IN A YEAR BY UNDERPAYMENTS BY MEDICARE.

IT'S, YOU KNOW, $800 MILLION OF LOSSES FROM MEDICAID.

SO YOU'RE RIGHT, OUR PAYMENTS FROM THE STATE GOVERNMENT, MEDICAID, HAVE NOT BEEN ADJUSTED SINCE 2019, AND WE ALL KNOW WHAT INFLATION HAS DONE IN THOSE LAST FIVE YEARS.

SO THE STRUCTURAL ISSUE THAT IS CAUSING THIS PROBLEM ACROSS URBAN AND RURAL PARTS OF THE STATE NEEDS TO BE LOOKED AT AND I THINK MINNESOTANS AND OUR LAWMAKERS AND ELECTED OFFICIALS NEED TO GET READY TO IT HAVE A -- TO HAVE A REAL CONVERSATION ABOUT WHAT'S GOING TO HAPPEN IN MINNESOTA.

>> Cathy: IF THE RATES WERE RAISED, THOUGH, WOULD THAT HAVE SAVED A PLACE LIKE MA MAHNOMEN?

I UNDERSTAND IT'S STILL OPEN, THEY WILL OFFER EMERGENCY SERVICES, OTHER HOSPITALS HAVE CLOSED, THOUGH.

WOULD THAT ACTUALLY BE A LIFELINE?

>> ABSOLUTELY.

SO, RIGHT NOW, MEDICAID, THE STATE GOVERNMENT PAYMENT AND INSURER, IS PAYING US 68 CENTS ON THE DOLLAR OF COST.

WE ALL KNOW WHAT HOSPITAL COSTS ARE, PHARMACEUTICALS, YOU KNOW, SERVICES, EQUIPMENT, BUT, MOST IMPORTANTLY, UR SUPPORT FOR OUR WORKFORCE.

YOU KNOW, WE WANT TO BE PAYING OUR NURSES AND OUR PHYSICIANS, SO THOSE COSTS ARE GOING UP, SOME OF OUR OSPITALS ARE SAYING, IN DOUBLE DIGITS, AND IF THE REVENUES ARE FIXED AND THE GOVERNMENT, MEDICAID, DOES NOT PAY US UP TO THE LEVEL OF COST, THIS IS WHAT'S GOING TO HAPPEN.

>> Eric: THERE IS A BILL IN THE LEGISLATURE TO PUT A CAP ON OSPITAL EXECUTIVE PAY.

WHAT DO YOU MAKE OF THAT?

WOULD THAT BE ENOUGH TO PUT A DENT IN THINGS?

>> WELL, $2.3 BILLION IN ONE YEAR OF UNDERPAYMENTS BETWEEN MEDICARE AND MEDICAID, AND HALF A BILLION OF LOSSES IN THOSE PATIENTS THAT ARE IN OUR UNITS THAT CANNOT BE DISCHARGED TO A NURSING HOME, YOU KNOW, EXECUTIVE PAY IS A MINUSCULE AMOUNT OF THAT.

I THINK WE NEED TO HAVE A BIG AND A GOOD CONVERSATION ABOUT WHAT'S GOING TO HAPPEN TO MINNESOTANS IN URBAN AND RURAL AREAS WHEN THESE MEDICAL SERVICES LEAK AWAY.

LABOR AND DELIVERY, AMBULANCE SERVICES, COMMUNITY-BASED SERVICES, ADULT DAY CARE, ON AND ON AND ON.

AND THAT'S GOING TO HAPPEN.

IT'S HAPPENING NOW.

>> Cathy: I WONDER, YOU KNOW, WITH MAHNOMEN, SO, AGAIN, THEY'RE GOING TO OFFER EMERGENCY SERVICES STILL, BUT HOW MANY OTHER SMALLER HOSPITALS MIGHT FOLLOW SUIT AND SOON?

>> I WAS TALKING TO A SMALL RURAL HOSPITAL CEO YESTERDAY, AND THIS IS IN A COMMUNITY JUST SOUTH OF THE TWIN CITIES, LOST $11 MILLION LAST YEAR, THE WORST YEAR EVER IN THEIR HISTORY.

TALKING TO ANOTHER HOSPITAL CEO, FURTHER DOWN SOUTH, IN RURAL MINNESOTA, LOST $16 MILLION LAST YEAR, WORST YEAR IN THE HISTORY.

SO I THINK, AS PATIENTS, WE'RE ALL PATIENTS, WE COULD NEED HOSPITAL LEVEL OF SERVICES TODAY, WE NEED TO REALLY SIT DOWN AND THINK ABOUT WHAT DO WE NEED.

SO WHAT DO WE NEED FROM THE STATE LAWMAKERS?

WE NEED MEDICAID PAYMENTS TO BE -- TO GO UP TO COST.

>> Eric: WE'VE RUN OUT OF TIME.

>> RIGHT.

>> Eric: BUT THE BUDGET SESSION IS, OF COURSE, 2025, SEE WHAT HAPPENS THEN.

>> THANK YOU, THANK