North Shore Health focusing on ‘people’ as the state examines budget cuts
As the state government continues to examine budget cuts to avoid a deficit, North Shore Health attempts to navigate an uncertain future regarding its services.
“It’s difficult to say, ‘Oh, here’s what the solution is going to be’ at this time, when you really don’t know what the impact is going to be,” North Shore Health CEO, Kimber Wraalstad told WTIP. “We hear a lot of we’re going to cut by ‘x’ billions of dollars, but there hasn’t been specific examples.”
An area of concern is North Shore Living, the care center that shares a campus with North Shore Health. Medicaid covers 75% to 85% of residents, and the state budget currently proposed by Governor Tim Walz would impact Medicaid reimbursement.
“At the same time, our regulators, both federal and state, are also adding requirements and various regulations that increase our costs,” Wraalstad said.
Wraalstad hopes that the proposed Swing Bed Legislation at the state level will help North Shore Health balance out the effects of Medicaid cuts.
Wraalstad also highlighted the pros and cons of being a smaller rural hospital. The hospital doesn’t have some services, like obstetrics services (OB) or inpatient behavioral health programs. Specific cuts to those programs may not affect North Shore Health, but it could affect hospitals where the organization typically transfers people.
“The concern is that you could see there are a number of hospitals that are on the verge of closure, and this could push it even more over the edge,” Wraalstad said.
As lawmakers finalize the budget to avoid a deficit, Wraalstad urges people to stay informed and in touch with their representatives. “I think it’s really important that we all stay very aware of what’s being proposed,” Wraalstad said. “What you’re talking about is people and how we care for people, and that should be the greatest concern.”
Next steps for the board
After a March 20 board meeting, which featured a long debate over the board’s confidentiality agreement, Board Chair Randy Witaala wants to keep the focus on the hospital itself.
“When we think about hospitals in general, do we lay awake and wonder about management or board of directors who owns the hospital or something like that, or do we think, ‘I hope they’re there when I need them?’” Witaala told WTIP.
The debate over the confidentiality agreement began in the February meeting and ended during the March meeting with a 4-1 vote in favor of voiding the agreement. The board voted on the agreement in the fall of 2024, though even members who previously approved it seemed confused by what the language allowed.
During the meeting, the public’s trust was cited as a reason for voiding the agreement. Board members Sam Usem and Milan Schmidt repeatedly stated that the board needed to operate transparently and win people’s trust. Other board members believed they already had the community’s trust.
“Anybody who comes to the hospital and needs care, you put your trust in the hospital, in the folks at the hospital,“ Witaala said. “And you know, the board is one component of the organization.”
The hospital is still exploring two measures to make it easier for the public to attend meetings. Like last year, the board is looking to rotate the meetings to different locations in Cook County, though they weren’t well attended.
The board is also considering live streaming board meetings for the public. This will be a topic of discussion during the next board meeting, on April 17.
WTIP’s Josh Hinke talked to Kimber Wraalstad and Randy Witaala about Medicaid cuts, Medicare, and more topics from the March Board meeting. The audio of that interview can be found below.
Josh Hinke April 5, 2025
