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You are at:Home»Health»Essentia Health, University of Minnesota proposes new framework for nonprofit health care
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Essentia Health, University of Minnesota proposes new framework for nonprofit health care

January 25, 2025003 Mins Read
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Today, Essentia Health and the University of Minnesota proposed the formation of a new nonprofit health care organization to support current and future patients across the state with expanded and improved care. The bold vision builds on the existing strengths and expertise of both organizations to forge a path forward for a stronger healthcare future.

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

“This is the start 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% of all Minnesota physicians having been trained at the university, we know that continuing to provide excellent patient outcomes while building a sustainable health care future rests on the foundation of a strong medical school Exploring opportunities to build a new framework for health care in Minnesota.

“Our state’s health care providers and leaders, along with everyday Minnesotans, have said loud and clear that the status quo is no longer working for anyone. We 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 take us away from business as usual and position us to join Minnesotans in the years ahead to address our state’s challenges and deliver truly 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 disease and make care more affordable for patients with better health outcomes. Amid challenging times, essentia’s clinicians have continued to deliver excellent outcomes 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 reinvestment in rural health care and increased access to high levels of specialized care.

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

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