New details released on proposed health care merger between U of M, Essentia
New details have emerged about the massive health care merger between the University of Minnesota and Essentia Health.
State lawmakers and the university’s Board of Regents had the chance to ask questions the last few days.
The proposal is still in its early stages but officials say combining the university and its medical school with Essentia’s largely rural hospital system would create the broadest geographic reach of any entity in Minnesota.
The idea is not without some drama, however.
At the U of M Board of Regents meeting on Friday, the CEO of Essentia and the University of Minnesota’s new president, Rebecca Cunningham, outlined their vision for a new integrated health care entity.
They say the merger would create a statewide network for learning, training and employment, decrease clinical costs and scale technology for use across a larger system.
“We’re having this as a public conversation because this will impact the public no matter what we do,” Cunningham noted.
Notably absent from the public presentations is the university’s current partner, Fairview Health Services.
RELATED: Fairview opposes possible 3-way merger with University of Minnesota and Essentia Health
Their chair was empty during a meeting at the Capitol earlier this week, with leadership sending a memo to employees saying they’re open to a partnership, but when it comes to being part of a merger, they said, “Our answer is no.”
They went on to say, “We believe it is essential for Fairview to maintain our independence and commitment to the patients and communities we serve.”
Fairview’s current agreement with the university expires at the end of 2026.
“This timeline has created the need for an urgent and innovative new path forward,” Cunningham said.
The university and Essentia say their plan would not consolidate hospitals or disrupt doctor-patient relationships, noting there are still many discussions to be had.
“Is this the best idea and if so how, can we come together and achieve it collectively?” asked Cunningham.
The university and Essentia say they want to hear from patients and doctors as they continue to flesh out the details of their plan.
As for the price tag, they plan to invest a billion dollars over five years to bring this vision to life without any extra money from the state or taxpayers.