University of Minnesota and Essentia Health share bold new vision for healthcare in Minnesota

A vision for an integrated “all-Minnesota” solution

The University of Minnesota and Essentia Health are sharing the framework for a bold vision to write the next chapter of healthcare for, and to best serve the healthcare needs of, all Minnesotans.

This proposed framework aspires to bring together the collective strengths of both organizations, and potentially other University and Essentia Health partners. The University and Essentia Health are proposing formation of a new not-for-profit entity to:

• Address the most urgent healthcare needs of the state in new ways — for today and for the future,
• Build on the strengths of the University of Minnesota and Essentia Health to lead and operate this new entity,
• Serve the needs of current and future patients and help educate the next generation of health professionals,
• Ensure the future of academic medicine in Minnesota and essential financial support to the University of Minnesota Medical School. 

Today’s announcement is just the start of transparent and comprehensive discussions these organizations still must have. Much more work will be needed to bring this vision to fruition. But it charts a course that fits the nonprofit mission of Essentia and the land-grant mission of the University to best serve all Minnesotans. The University and Essentia have shared their vision and the potential for an “all-Minnesota” health solution with Fairview Health Services. 

“Our state’s healthcare providers and leaders, as well as everyday Minnesotans, have said loud and clear that we need a healthcare transformation in Minnesota to increase access to care and keep patients close to home with high quality care,” said University of Minnesota President Rebecca Cunningham. “We agree, it is time to forge a new path forward and deliver a solution for all Minnesotans. This bold new 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 healthcare.”

Essentia Health CEO and ophthalmologist Dr. David Herman called this proposal “the beginning of an exciting, ambitious, and critically needed conversation” about the future of healthcare in our state.

“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 healthcare 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 healthcare in Minnesota.” 

The shared goal of the University of Minnesota and Essentia Health is to overcome Minnesota’s most pressing healthcare challenges. The healthcare challenges facing our state and nation are multiple: increasing costs; flat or declining reimbursement; limited access; critical workforce shortages; and structural inequities that amplify health disparities. The proposed framework for a solution doesn’t just form new partnerships, but re-envisions the future to offer wide-ranging benefits for patients throughout Minnesota. 

If realized, this new model would help Minnesotans enjoy more comprehensive care, delivered closer to home, where patients need it the most, especially in rural and Tribal communities with fewer local healthcare options. The framework for this solution would preserve existing doctor-patient relationships for patients across our systems while delivering the unrivaled benefits of one of the nation’s leading research universities — increased access to cutting-edge diagnostics, advanced treatments, specialized care, and innovative clinical trials taking place every day.

For healthcare professionals, this approach would create new opportunities to build fulfilling clinical careers caring for Minnesotans and those who travel here from outside the state for exceptional healthcare. Long term, this proposed solution would also decrease clinical costs, allow more sustainable and innovative models (e.g., home health, telehealth, pharmacy services), and scale expensive healthcare technology for use across a large system. 

An opportunity for further investment on behalf of patients

This broad framework not only signals the potential for a significant commitment to the health of all Minnesotans, but a significant strategic investment to help bring the vision to life in a way that is sustainable and successful for decades to come. The proposed new all-Minnesota health system solution would invest $1 billion over five years to bring this vision to life.

This would be possible by leveraging the assets of the combined proposed system to unlock financing, and the vision for our shared future to inspire philanthropic support for this not-for-profit all-Minnesota solution.

The newly formed, integrated health framework would re-invest in University of Minnesota on- and near-campus medical facilities, as well as in rural healthcare and increased access to elevated levels of specialized care.

The University currently operates under a collaborative agreement with Fairview Health Services, which ends in 2026. 

“We are at an inflection point in our relationship with Fairview Health Services that requires an urgent and innovative solution,” said Cunningham. “We envision this model as a new path forward in our relationship, one that builds on the momentum all those at M Health Fairview have built and that continues to put patients first, consistent with our organizations’ shared priorities. We have begun conversations and invite further discussion with Fairview to bring this concept to life for Minnesota.

“We believe that a healthier and more vibrant Minnesota is not only possible — it’s our duty,” added Cunningham. “This bold vision creates a new day for healthcare in Minnesota, meeting the critical needs of today and anticipating the demands of the future.”