University of Minnesota, Essentia Health announce healthcare partnership

MINNEAPOLIS — The University of Minnesota has found a new healthcare partner in Essentia Health.

In a news release, the two organizations described their new partnership as a “bold vision to write the next chapter of healthcare for, and to best serve the healthcare needs of, all Minnesotans.”

The announcement comes more than a year after the U of M’s current healthcare partner, Fairview Health Services, said it would not renew its healthcare partnership with the university when it expires at the end of 2026.

According to the news release, the University of Minnesota and Essentia Health are looking to create a new non-profit with four key goals:

• Address the most urgent healthcare needs of the state in new ways — for today and 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 provide essential financial support to the University of Minnesota Medical School.

The partners said their shared goal is to confront significant healthcare challenges in Minnesota and the U.S. as a whole, including rising costs, declining reimbursement and limited access to care. The announcement notes the organizations hope to deliver healthcare “closer to home,” particularly in rural and Tribal communities where healthcare options have declined in recent years.

The proposal includes a $1 billion strategic investment over five years “to bring this vision to life.”

“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 in a statement. “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.”

The announcement states that current doctor-patient relationships would not change while providing “increased access to cutting-edge diagnostics, advanced treatments, specialized care, and innovative clinical trials taking place every day.”

“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 in a statement. “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.”

University President Rebecca Cunningham said discussions are underway with current partner Fairview about the U’s new healthcare vision.

“We are at an inflection point in our relationship with Fairview Health Services that requires an urgent and innovative solution,” Cunningham said in a statement. “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.”