Hennepin County Medical Center, the state's biggest public hospital, has named Arthur Gonzalez, a health care executive from California, as its new chief executive officer.

He replaces Lynn Abrahamsen, who is retiring.

Gonzalez was chief executive of Tri-City Healthcare District, a public health care system in Oceanside, Calif. He takes over July 1, at a time when hospitals in general and HCMC in particular are facing tough financial times.

He has led for-profit and nonprofit hospitals in California, Louisiana, Texas and Arizona.

At Tri-City Healthcare, Gonzalez turned around a money-losing hospital and modernized it. In the 10 years he was there, revenue grew from $146 million a year to $330 million a year.

Those skills will be useful at HCMC, which has been battered by the economy and state funding cuts.

"Hennepin County Medical Center is a special place with a special mission," Gonzalez said in a statement. "I believe HCMC has the foundation to face the current challenges and thrive in the future."

Fewer private patients are able to pay their bills and HCMC has had two rounds of layoffs so far this year.

As it braces for further cuts in state funding, Abrahamsen has said the hospital may have to start turning away non-emergency patients who come from outside Hennepin County.

Abrahamsen, who has been at HCMC since 2001, led the medical center when the state cut funding for Medicaid, known in Minnesota as Medical Assistance. HCMC gets almost half its revenue from Medicaid patients.

"Thanks to her, HCMC remains a top teaching institution, safety net and critical care hospital and clinic system, and a leader in emergency preparedness for our region," said Mike Opat, Hennepin County board chairman.

Chen May Yee • 6120673-7434