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Essentia Health and HealthPartners enter affiliation agreement
The combined organization will serve 22 hospitals, more than 135 clinics and 6,000 clinicians, with no expected interruption to patient care.
On Tuesday, the boards of Essentia Health and HealthPartners approved an affiliation agreement to combine their nonprofit health systems, with operations anticipated to begin Jan. 1, 2027, pending customary regulatory approvals.
Operating across the Twin Cities, northern Minnesota, North Dakota, and Wisconsin, the combined footprint includes 22 hospitals, more than 135 clinics, and 6,000 clinicians supporting a workforce of 45,000 colleagues.
CEO Andrea Walsh will lead the new organization, while Essentia Health CEO David Herman will serve as president of combined clinical care operations, focusing on shared investments in technology and affordable care.
Providers face mounting pressure from higher labor costs and declining Medicaid funding, driving this third major merger proposal in Minnesota this year; Herman noted that 24% of Minnesotans currently receive Medicaid.
Pending customary regulatory approvals, the systems plan to integrate operations while preserving union contracts and maintaining existing branding for Essentia facilities, positioning the nonprofit to navigate the dynamic health care environment.