The Hennepin County Board, meeting Tuesday, approved and sent to the state Legislature a proposal to establish a "public benefit corporation" to take over direct management of Hennepin County Medical Center (HCMC).

Unions concerned about HCMC?s 4,000 employees fear the plan could jeopardize worker protections and pensions. Community groups fear the plan could threaten the hospital?s current commitment to provide quality care for everyone, regardless of health insurance or ability to pay.

The plan?s supporters maintain that the hospital needs a board with special expertise and greater flexibility with human resources to survive in the competitive Twin Cities market.

Five unions representing or organizing employees at HCMC have signed letters to county commissioners opposing the proposal. The Central Labor Union Council delegate assembly, meeting Dec. 8, also passed a resolution opposing any HCMC governance change "that threatens or weakens the bargaining rights and pensions of current or future employees . . ."

The Legislature must approve the plan. Approval is by no means assured. Tuesday's vote was 5-2, the same as the tally taken Nov. 30 when county board members ? meeting in committee as the HCMC Governance Board ? were ready to commit up to $300,000 to a lobbying effort to win legislative approval for the proposed governance change.

Commissioners Peter McLaughlin and Gail Dorfman were the dissenters.

County board members heard testimony Nov. 30 from hospital administrators, the citizen committee which developed the proposed governance change, unions, and the public.

"We have an under-investment problem in both facilities and technology and our employees," said Jeff Spartz, HCMC systems director (and a former Hennepin County commissioner). "We are competing against non-government entities," he said. "We need to have a human resource system that allows us to compete."

"We believe it's critical that significant change be undertaken," said Irving Weiser, chair of RBC Dain Rauscher, who led the governance committee. "We believe that a new employment model is needed."

That's the kind of talk driving union opposition to the plan, which would set up an independent, appointed board to manage the hospital. The new board would be appointed by the Hennepin County Board, which would retain some oversight responsibilities.

"We're opposed to the change," said Bernie Hesse, representing Progressive Minnesota. "We think there'd be a loss of accountability."

Jerry Serfling, metro field director for AFSCME Council 5, also spoke against the governance change. "It appears to provide a blank check to management," he said, to change work rules and job classifications. He added, "our attorney tells us, and our union?s direct experience informs us, that the proposed changes will not stand a test by the National Labor Relations Board concerning maintenance of HCMC as a public employer."