North Memorial is set to lay off over 100 workers, and cut outpatient mental health services at it's Robbinsdale location.
The provider is citing unsustainable labor costs and an overflow of patients covered by government-sponsored health plans that aren't covering the full cost of care as the reason for the halt on services.
Executive Director of Mental Health Minnesota Shannah Mulvihill says she has heard similar concerns from providers across the state.
"Medicaid rates are set by the state in terms of what Medicaid pays for these different services," says Mulvihill. "Those are very low and have seen very little in terms of increases for decades. Yet the cost of delivering the care continues to increase."
Mulvihill says she's concerned for patients and what comes next for them.
"When programs continue to close, like this example with North Memorial Health, you know, where are those folks going to go? Because there's only so many options. We already have a workforce shortage. We have long wait times for even outpatient care," she explains.
The hospital plans to work with current mental health patients to find new outpatient providers between now and August 30.