Essentia Health and the University of Minnesota are working together to create a nonprofit health care entity that will support patients now and in the future with "expanded and enhanced" care, the health system and university announced Jan. 24.
They hope the collaboration will improve patient outcomes, expand access to care, and build a more sustainable health care in Minnesota.
"This is the beginning of an exciting, ambitious — and critically needed — conversation about the future of care in our state," Essentia Health CEO Dr. David Herman said in a statement.
The new nonprofit would invest up to $1 billion over the next five years, with a vision that Essentia patients will have easier access to care through work with the university's academic medical centers. The entity would also "open the door to significant reinvestment in rural health care and increased access to elevated levels of specialized care," according to a press release.
Essentia Health, based in Duluth, Minnesota, has a network of 14 hospitals, 80 clinics and other facilities in Minnesota, North Dakota and Wisconsin. Under the new agreement, the Catholic facilities in the system will continue to abide by the Ethical and Religious Directives for Catholic Health Care Services.
Herman pointed out that the health system and the University have worked together as longtime, committed partners, and that nearly 70% of all physicians in Minnesota were 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," he continued. "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," University of Minnesota President Rebecca Cunningham said in a statement. "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."
The University operates under a collaborative agreement with Fairview Health Services, which ends in 2026.