HealthPartners, Essentia announce planned merger

REGIONAL- HealthPartners and Essentia Health announced Tuesday that they plan to combine their organizations under the HealthPartners name, a move that would create one of the Upper Midwest’s largest nonprofit health systems.
The agreement, approved by both organizations’ boards, is expected to be subject to review under Minnesota’s health care transaction law. The systems expect the combination to take effect Jan. 1, 2027.
For current Essentia patients, the announcement does not signal an immediate change in care or coverage. The organizations said patients and members should not experience changes or interruptions, while Essentia facilities will retain the Essentia Health name as operations are integrated.
Essentia operates a clinic and pharmacy in Ely and Virginia. The announcement did not identify any facility-level changes there or elsewhere in Essentia’s service area.
The combined organization will operate as HealthPartners and will include 22 hospitals, more than 135 clinics, and about 6,000 clinicians across Minnesota and the upper Midwest. It will employ about 45,000 people.
HealthPartners President and CEO Andrea Walsh will lead the combined organization. Essentia CEO Dr. David Herman, who has led the Duluth-based system since 2015, will serve as president of the combined clinical care group operations.
“This combination is about doing more for the people and communities who count on us,” Walsh said. “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.”
HealthPartners is both a health care provider and health insurer, while Essentia is a major care provider across northern Minnesota, North Dakota, and Wisconsin. The organizations said their complementary strengths in care delivery, insurance coverage, rural and urban health care, research, medical education, and technology made the combination a good fit.
They said the new organization would seek to expand access to specialty care, telehealth, and coordinated care, while investing in research, digital health, data analysis, and workforce development. The organizations also pointed to HealthPartners’ integrated insurance and care-delivery model as a way to make care and coverage easier to navigate and more affordable.
“Our organizations share similar missions and values, deep roots in this region and a focus on improving health and well-being,” Herman said. “As a combined nonprofit health system, we will be able to better innovate and grow our workforce.”
More information on the HealthPartners-Essentia combination is available at healthpartners-essentiahealth.com.