Nonprofit Care, For-Profit Bills
Key Findings
- Minnesota hospitals allocate approximately 0.8% of operating budgets to charity care, well below the national average of 2.4%.
- 62 of 123 general hospitals in the state spent less than 0.5% on charity care between 2020 and 2024.
- CentraCare's St. Cloud Hospital spent less than 0.25% on charity care — the equivalent of just $25 for every $10,000 in operating costs.
Patient Experience
Cori Roberts was diagnosed with cervical cancer and had insurance. Still, she faced over $8,000 in medical bills. When she applied for charity care, CentraCare denied her application, citing excess income.
Over two years, she paid more than $6,000. Then, the hospital sued her for the remaining debt. Roberts only escaped the lawsuit after taking a loan against her retirement to settle the balance.
"They're supposed to be a nonprofit. It's like, 'Come on!'"
— Cori Roberts
Background
Nonprofit hospitals receive tax breaks in exchange for providing charity care to their communities.
Minnesota's low charity care rates are partly attributed to broad job-based insurance and expanded Medicaid, which reduce the number of uninsured patients. However, eligibility standards vary widely across hospitals, with some requiring detailed financial documentation, including bank statements and asset values.
Hospital officials argue they serve communities through other means — such as training medical staff and maintaining money-losing but essential services.
Minnesota Hospital Association spokesperson Tim Nelson noted: "No amount of charity care from hospitals will ever fully meet the needs of uninsured or underinsured Minnesotans."
Statements
"There is a benefit you get from being a nonprofit hospital in the state of Minnesota. But do the people get the benefit?"
— Minnesota Attorney General Keith Ellison
CentraCare spokesperson Karna Fronden declined to discuss Roberts' case due to privacy laws, stating that the system provides assistance beyond charity care, such as insurance enrollment.