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Committed to Care, Today and Into the Future
April 3, 2026
Mille Lacs Health System (MLHS) remains open and fully operational as it works through a Medicare billing issue impacting multiple rural hospitals. Patient care and safety have not been impacted, and all services continue to operate as normal. Patients can feel confident continuing their care as planned.
The Medicare billing problem, which began earlier this year, has affected hospitals across Minnesota and beyond. Due to a system issue tied to provider enrollment errors, claims have been denied and payments delayed for care that has already been provided.
For MLHS, this has resulted in millions of dollars in delayed reimbursement since January 1. Medicare represents a significant portion of the organization’s patient population, making timely payment critical to daily operations. Like many rural hospitals, MLHS has been working diligently to address the issue while continuing to provide care to the community.
Recognizing the broader impact, MLHS leadership has taken an active role in bringing attention to the issue. CEO Andy Knutson has been working with media outlets and engaging with state and national partners to help elevate awareness and support timely action on behalf of rural hospitals.
Recent updates from the Centers for Medicare & Medicaid Services (CMS) indicate progress is being made. As of last week, CMS confirmed they are deactivating the specific codes that have been triggering claim denials in the system. This step is expected to move the situation toward resolution.
MLHS CEO Andy Knutson recently shared that there is “light at the end of the tunnel” as these efforts begin to show results. Leadership anticipates that payments may begin to resume in the near future, which would help restore normal cash flow.
“Our patients can feel confident continuing their care here,” said Dr. Patti Hook, Chief Medical Officer. “This situation is related to how care is reimbursed, not the care itself. Our team is here every day, focused on our patients and our community.”
Throughout this process, MLHS has taken steps to manage the financial impact while prioritizing patient care. Leadership has worked closely with financial partners, paused certain capital projects, and taken internal measures to help navigate the situation.
Despite the challenges, the focus has remained clear: ensuring continued access to care close to home. Rural hospitals play a vital role in their communities, providing emergency services, clinic care, and life-saving treatment when time matters most.
As progress continues, MLHS will keep the community informed. The organization remains committed to providing reliable care and serving the needs of the region - today and into the future.
Patients are always welcome to contact the MLHS Quality Department at 320-532-2420 with any comments or concerns about their care and experience.