HealthPartners, Essentia Health announce plans to merge, effective Jan. 2027

(FOX 9) - Two more Minnesota-based healthcare providers are planning to merge, potentially creating one of the largest nonprofit healthcare systems in the upper Midwest region. 

HealthPartners-Essentia Health merger 

What we know:

HealthPartners and Essentia Health announced Tuesday their boards of directions have approved an agreement to combine their organizations. The combined organization, which will be called HealthPartners, will include 22 hospitals, more than 35 clinics and 6,000 clinicians across Minnesota, North Dakota and Wisconsin, according to a news release. 

Essentia facilities will keep their Essentia Health name while operations are integrated, the news release said. HealthPartners and Essentia said patients and members should not experience any changes or interruption to their care or coverage as a result of the merger. 

Dig deeper:

The two organizations cited rising healthcare costs as a reason for the merger, saying that combining their capabilities and resources allows them to better innovate, improve affordability and results in more choices for patients and better coordination of care. 

Big picture view:

The proposed merger comes as several other large healthcare regional systems are also planning to combine. 

Earlier this month, North Memorial Health finalized a merger with South Dakota-based Sanford Health. Minnesota-based Allina Health is also set to join California-based Sutter Health, but Minnesota Attorney General Keith Ellison has yet to approve that merger. 

Leadership structure for new HealthPartners organization

What they're saying:

Current HealthPartners President and CEO Andrea Walsh will lead the new organization, while Essentia CEO David Herman will serve as president of combined clinical care group operations, according to the news release. 

"This combination is about doing more for the people and communities who count on us," Walsh said in a statement. "HealthPartners and Essentia Health share a belief that everyone deserves access to high-quality care and coverage, close to home and centered on their needs. Together, we can build on the strengths of both organizations to improve health, expand access and create a stronger future for the communities we serve."

In his own statement, Herman added: "Our organizations share similar missions and values, deep roots in this region and a focus on improving health and well-being. As a combined nonprofit health system, we will be able to better innovate and grow our workforce. That strong foundation will make us even better partners for our patients, working together to help people live their healthiest lives, wherever they call home."

What's next:

The merger is pending regulatory approval. If the merger is approved, HealthPartners and Essentia said they’ll begin operating as a single organization effective Jan. 1, 2027. 

The two organizations are expected to hold a virtual, joint news conference at 1 p.m. Tuesday to discuss the proposed merger. 

Health Care