And a proposed merger of Allina Health and California-based Sutter Health<\/a> remains under review by state regulators.<\/p>\n St. Mary\u2019s Medical Center and Essentia Health employees gather for the opening of the new hospital in Duluth.<\/p>\n Erica Dischino for MPR News | 2023<\/p>\n Speaking with reporters Tuesday afternoon, Walsh and Herman said the merger is needed to confront challenges facing the broader healthcare sector, including rising healthcare costs and health insurance premiums, lower reimbursements, and workforce shortages.<\/p>\n \u201cWhat we believe is HealthPartners and Essentia together, coming together, we can combine complementary strengths to improve health experience affordability and quality, and to navigate some of the industry trends that are a challenge not only in Minnesota but across the nation,\u201d Walsh said. <\/p>\n \u201cThat\u2019s what other health systems are finding \u2014 that when you have complementary capabilities, you\u2019re stronger together,\u201d Herman said.<\/p>\n Herman described the proposed merger as the two systems leading, rather than reacting, to a healthcare environment he described as \u201cdynamic\u201d and even \u201cchaotic.\u201d<\/p>\n \u201cWe know that while we\u2019re strong, our patients, our communities, and our colleagues depend upon us. And coming together when we\u2019re strong, working on things that we know are important \u2014 like access, affordability, getting your best care and your best health wherever you choose to live \u2014 are the things that are important,\u201d he said.<\/p>\n HealthPartners and Essentia Health said Tuesday that they have \u201ccomplementary strengths in care delivery, health plan coverage, urban and rural community health, research, medical education and innovation.\u201d<\/p>\n They said the merger would give patients access to more medical expertise and specialists and give employees more career pathways within the organization.<\/p>\n Walsh would lead the combined organization, with Herman serving as president of combined clinical care group operations.<\/p>\n HealthPartners and Essentia said their patients and members should not see any changes or interruptions to health care or insurance coverage. Walsh and Herman said there are no plans to close clinics or hospitals.<\/p>\n For now, Essentia Health facilities will retain that branding. Herman said the plan is to convert them to the HealthPartners name at some point in the future, once the two systems are fully combined.<\/p>\n The Minnesota Nurses Association issued a statement saying it has \u201cserious concerns\u201d about the merger plan \u2014 with the union also saying its members who are employed by both health systems had no advance notice of the proposal ahead of Tuesday\u2019s public announcement.<\/p>\n \u201cMinnesota has now seen three major back-to-back healthcare consolidation announcements, and nurses are deeply concerned about what that could mean for our patients and communities,\u201d MNA President Chris Rubesch, a registered nurse at Essentia Health, said in a statement. \u201cEvery time control over healthcare is concentrated in fewer hands, we need to understand what patients and communities stand to gain, what they could lose and who will be accountable for those outcomes.\u201d<\/p>\n In a statement following Tuesday\u2019s merger announcement, Minnesota Attorney General Keith Ellison said his office will gather public comments<\/a> on the planned merger, as it reviews the proposal.<\/p>\n \u201cProposed healthcare consolidation requires close scrutiny,\u201d Ellison said in a news release. \u201cAs we have done several times now, we will conduct a thorough review of this potential acquisition to ensure it complies with the law and is in the public interest.\u201d<\/p>\n HealthPartners operates nine hospitals \u2014 including Regions Hospital in St. Paul \u2014 as well as dozens of clinics. It also offers health and dental insurance plans covering more than a 1.5 million people. <\/p>\n Essentia Health operates 14 hospitals and dozens of clinics in central and northern Minnesota, Wisconsin and North Dakota.<\/p>\n In 2025, Essentia Health was part of a proposed health system alliance<\/a> involving Fairview Health Services and the University of Minnesota \u2014 but that proposal did not move forward<\/a>.<\/p>\n![\"Employees](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/09\/0081da-20230719-stmarymedicalcenter105-600.jpg\")
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