Essentia Health, University of Minnesota Propose New Framework for Nonprofit Health Care

Today, Essentia Health and the University of Minnesota have proposed the formation of a new nonprofit health care organization to support current and future patients across the state through expanded and enhanced care. The bold vision builds on both organizations' existing strengths and expertise to forge a path forward for a stronger health care future.

The new integrated care model would transform Minnesota’s clinical ecosystem by bringing together Essentia, the state’s premier nonprofit rural health system, and the University of Minnesota’s nationally recognized academic and research excellence.

"This is the beginning of an exciting, ambitious – and critically needed – conversation about the future of care in our state,” said Essentia Health CEO Dr. David Herman. “Essentia Health has a long and committed partnership with the University of Minnesota. With nearly 70 percent of all Minnesota physicians having been trained at the University, we know that continuing to deliver excellent patient outcomes while building a sustainable health care future rests on the foundation of a strong medical school. These are key reasons why Essentia leadership has begun exploring opportunities to build a new framework for health care in Minnesota.”

“Our state’s health care providers and leaders, as well as everyday Minnesotans, have said loud and clear that the status quo is no longer working for anyone. We have heard them and we agree, it is time to forge a new path forward and deliver a solution for all Minnesotans,” said University of Minnesota President Rebecca Cunningham. “This bold, newly proposed path would shift us away from business as usual and position us to join with Minnesotans in the years ahead to address our state’s challenges head-on and deliver real transformational solutions in health care.” 

Essentia Health is a national leader in value-based care, leveraging its integrated care model and community partnerships to prevent illness and make care more affordable for patients with better health outcomes. Amid challenging times, Essentia clinicians have continued to deliver excellent results for their patients, and its physician-led leadership team has demonstrated the ability to support financial resilience and stability.

Through this vision, Essentia patients would have more seamless access to the highest levels of care through collaboration with the University’s academic medical centers. This framework would also open the door to significant re-investment in rural health care and increased access to elevated levels of specialized care.

The new nonprofit health care entity would invest up to $1 billion over several years to realize this vision for Minnesota’s health care future.