HCMC’s exiting leader could get more than $1 million in severance

Jennifer DeCubellis, the departing CEO of Hennepin Healthcare System, which runs HCMC in Minneapolis, could receive more than $1 million in severance pay and benefits after her last day May 10.

DeCubellis, who announced her resignation in March, will continue to be paid her salary for six months after her last day, a sum of more than $470,000. HCMC will cover the employer portion of her health care costs at about $85,000. She will also receive nearly $118,000 for 6½ weeks of unused paid time off.

DeCubellis also is eligible for a second six months of severance pay, provided she hasn’t found another job. The additional pay will stop once she has new employment.

Hennepin Healthcare receives taxpayer funding, and the details of DeCubellis’ severance package were released in response to a public records request by the Star Tribune under the Minnesota Data Practices Act. Tax records show she earned $1.1 million in pay, bonuses and benefits in 2023, the most recent data available.

Her severance package is similar to what her predecessor, Dr. Jon Pryor, received when he left the hospital in 2019. Hennepin Healthcare declined to comment on the severance package.

DeCubellis announced her resignation during the Hennepin Healthcare board’s March 26 regular meeting, saying in a statement that “a strong leader passes the baton when the time is right.”

The board had planned to discuss her performance evaluation at the same meeting. She received a positive evaluation from the majority of the board in 2024.

Dr. Thomas Klemond, previously the president of HCMC’s medical staff, was picked April 3 by the board to be interim CEO while a national search is conducted for a permanent replacement.

DeCubellis joined the health system in early 2020 and led HCMC through some tumultuous times, including the coronavirus pandemic and the unrest following the police murder of George Floyd. More recently, she faced criticism from union members over her leadership, changes to employee benefits and working conditions at the state’s largest safety-net hospital.

Union leaders from the Minnesota Nurses Association said in a statement they were disappointed DeCubellis could receive more than $1 million in severance.

“This money should be used to care for patients, improve facilities and retain our workforce instead of rewarding failed leadership,” their statement said.

Hennepin Healthcare, a subsidiary of Hennepin County, was created in 2006 to run HCMC and its related clinics. Its facilities are owned by the county and commissioners approve the health system’s roughly $1.5 billion annual budget.

In December 2023, the County Board temporarily increased oversight of the health system budget in response to complaints from union workers and a $127 million budget deficit.

In a statement, Commissioner Irene Fernando, who also sits on the Hennepin Healthcare board, noted the “internal and external challenges” HCMC has faced and the importance of the safety-net services it provides to the community, regardless of patients’ ability to pay.

As demand for those services grows, Fernando said she looked forward to “a robust national search” for a new CEO to “bring strong leadership” to the publicly backed institution.