News Release

University of Minnesota and Essentia Health believe the opportunity remains to build a bold, shared solution for Minnesota healthcare

U of M Regents seal

Vision strongly aligns to Governor’s Task Force findings and input from stakeholders from across Minnesota

The University of Minnesota and Essentia Health today affirmed their commitment to their shared vision for a bold, new integrated “all-Minnesota” health model that re-invests in research and education, rural healthcare and increases access to essential healthcare services across Minnesota. 

Last month, leaders from the University of Minnesota and Essentia Health announced their vision for an “all-Minnesota” solution. They continue to evolve the vision and build momentum toward creating a shared solution that overcomes Minnesota’s most pressing healthcare challenges and best serves patients and Minnesota. The opportunity remains to build a bold, shared solution that best meets the needs of patients and Minnesota — both now and in the future. 

“Our focus is on transformational change and our responsibilities to serve Minnesotans and their health; not a structure or contract focused on buildings and faceless transactions,” said University of Minnesota President Rebecca Cunningham. “We believe there is a significant opportunity to build on the strengths of our existing partnerships across our organizations and the high-quality care to which our physicians, health providers and staff have collectively committed themselves. We remain committed and are open to addressing any and all issues with Fairview."

“We know healthcare – especially rural healthcare – is facing many challenges right now, and Essentia Health is eager to be part of innovative solutions,” said Essentia Health CEO Dr. David Herman.  “By building on the long, committed partnership we already enjoy with the University of Minnesota, we can help ensure the long-term success of the University and its ability to train the caregivers we depend on in communities across our state.“

The vision aims to create a non-profit integrated healthcare entity focused on innovative and sustainable solutions that amplify the strong people and capabilities of each organization and deliver a singular enterprise with a singular mission. Above all else, the vision prioritizes patients. In fact, it is intentionally designed to make it easier for patients and providers to reduce logistical hurdles, increase access and innovation, and better allocate resources to improve health in one of the most geographically expansive healthcare entities in the state.  

In addition to the patients-first focus, the new health entity will be guided by the following principles, which were included in a formal proposal submitted to Fairview Health Services:

  • We will operate as a single system—not an alliance of separate facilities or as a mere holding company that is hard for patients to navigate. For example, this would mean a single electronic medical record (EMR) so any health provider could access patient records and allow for seamless referrals. It also likely means less unnecessary duplication of diagnostic tests.
  • We will allocate investments and resources where they can do the most good for patients while advancing the overall goals of the new organization — avoiding duplication of costly high-margin programs and creating “centers of emphasis” for specific diagnoses or treatments. It may also mean that replacement of University of Minnesota Medical Center facilities on and around the University of Minnesota campus in Minneapolis could be smaller than the current 800+ beds as patients are able to seek care from sites across the new non-profit entity.
  • We will hold down the costs of care while still ensuring financial support that empowers excellent care, needed facility and technology investments, and the teaching, research and outreach mission of the state’s only public land-grant University of Minnesota Medical School.
  • We will respect the unique capacities and market conditions of our providers and their communities, while establishing common, high expectations of quality and performance.
  • We will maximize the benefits of the University’s teaching, training and research to expand our service across the state — including through care, clinical trials, research innovation, and the training of physicians and other professional health providers that all Minnesotans need. Providers are most likely to stay and practice where they were born, lived or trained (BLT). Training in rural and Tribal areas means providers are more likely to stay and spend their careers there.
  • We will infuse the values of evidence-based medicine and research, and rapid deployment of research innovations to bedside care, treatments and cures.
  • We will play an expanding role in the value-based care and other innovative models that will enhance health and control costs for future generations. Essentia Health has a strong history in value-based care. This and other “best practices” can be shared across the new entity to accelerate adoption and implementation.
  • Finally, we will pursue governance that fairly represents all involved. 

This new model will help Minnesotans enjoy more comprehensive care delivered closer to home, where they need it the most, especially in rural and Tribal communities that have fewer local healthcare options.

As the conversation proceeds, the focus will remain on a transformational approach to create a seamless system of care that best serves all of Minnesota. The new framework charts a bold course for the future, one that maximizes the benefits of the University’s teaching, training, and research to expand the reach of our service across the state — including through care, clinical trials, research innovation, and the necessary training of the physicians and other professional health providers that all Minnesotans need. 

Media Contacts

Andria Waclawski

University Public Relations
612-624-7403