HealthPartners and Essentia Health announced plans to combine into one healthcare system in an attempt to expand care access across Minnesota and the upper Midwest.
The nonprofits’ boards of directors approved the acquisition on Tuesday, and if regulators approve the plan, it would take effect at the start of 2027, with the combined system operating under the HealthPartners name.
“This combination is about doing more for the people and communities who count on us,” said HealthPartners President and CEO Andrea Walsh. “HealthPartners and Essentia Health share a belief that everyone deserves access to high-quality care and coverage, close to home and centered on their needs. Together, we can build on the strengths of both organizations to improve health, expand access and create a stronger future for the communities we serve.”
The combined organization would include 22 hospitals, more than 135 clinics and 6,000 clinicians. Essentia facilities in northern Minnesota and North Dakota will stick to their name during the transition but will later be called HealthPartners.
Patients at the facilities should not expect any changes or interruption to their care or coverage during the transition, the healthcare systems said.
Walsh will lead the new organization, and Essentia Health CEO David Herman will serve as president of combined clinical care group operations.
“What we’re doing right now, is we’re leading,” Herman said.
“We see it as two strong organizations coming together to improve health and well-being across our region,” Walsh added.
This marks the third high-profile transaction involving Minnesota healthcare systems to be set in motion this year.
Earlier this year, Minnesota Attorney General Keith Ellison green-lit South Dakota-based Sanford Health’s purchase of North Memorial Health. California-based Sutter Health’s proposed acquisition of Allina Health is still pending.
Sanford had previously attempted to purchase Fairview Health Services, but that deal fell through.
In a statement, a coalition of healthcare unions said Tuesday’s announcement brings more uncertainty for an industry that’s facing increasing consolidation and reshuffling.
“As with the other deals, workers are worried about cuts to jobs and services, and patients are worried about rising costs,” the unions said. “These are real concerns for Minnesotans across our state, and we are once again calling on Attorney General Keith Ellison to use his power within the law to provide oversight into this proposed merger and ensure the interests of Minnesota’s workers and patients are protected.”
In response, Herman said, “We look forward to sitting down and discussing those and answering the questions that they have.”
Walsh added, “We have strong labor relations, and I think hearing out what the concerns are … will be important to do in the coming days.”
Ellison’s office said on Tuesday it is gathering feedback during its review of the proposed HealthPartners-Essentia deal to determine if it is in the public interest.
“Historically, the evidence has shown that mergers and acquisitions in the healthcare space directly lead to reductions in service, reductions in access and increased prices. When there’s less competition, prices go up,” said Chris Rubesch, the president of the Minnesota Nurses Association.
The union is calling for a transparent review of the deal’s impact on jobs, patient choice, insurance networks and access to care.
“We’ll be looking for the healthcare companies to not just commit verbally to any of these agreements, but to commit in writing, binding agreements that protect patient access to care, protect costs, and protect employees,” Rubesch said.
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