Duluth, Minn.-based Essentia and the university have reiterated their belief in the need for a patient-centered, nonprofit health system that leverages their combined strengths. Their vision, branded as an “all-Minnesota solution,” aims to streamline operations and eliminate inefficiencies that can hinder patient care.
“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, MD, said in a Feb. 13 news release shared with Becker’s. “We remain committed and are open to addressing any and all issues with Fairview.”
Essentia CEO David Herman, MD, emphasized the importance of rural healthcare in their proposal.
“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,” Dr. Herman said.
The proposed model aims to reduce logistical barriers for patients and providers, improve resource allocation and create centers of emphasis for specialized care. It also includes a commitment to a unified EHR system.
Despite these aspirations, Minneapolis-based Fairview has firmly declined the merger. In a letter to employees, CEO James Hereford and Board Chair John Heinmiller said the health system does not see “demonstrable improvements” for its employees and patients under the proposed model. Instead, Fairview remains open to exploring strategic partnerships that align with its goals.
“When it comes to a proposed merger between Fairview, the University, and Essentia — our answer is no,” the letter read.
Fairview’s rejection of the merger raises questions about the future of the University of Minnesota’s relationship with the health system. Their current agreement expires in 2026, and while discussions continue, the university has acknowledged the need for an “urgent and innovative solution.”
Dr. Cunningham reaffirmed that patient care remains the priority.
“We envision this model as a new path forward in our relationship, one that builds on the momentum all those at Health Fairview have built and that continues to put patients first, consistent with our organizations’ shared priorities,” Dr. Cunningham said.
Despite Fairview’s decision, the University of Minnesota and Essentia are pressing forward with their vision. Their plan includes:
- Establishing a single, integrated system rather than a fragmented alliance of facilities.
- Expanding investment in research, education and rural healthcare.
- Strengthening value-based care initiatives to improve outcomes and reduce costs.
- Enhancing statewide training for healthcare professionals, especially in rural and tribal areas.
- Implementing evidence-based medicine and research innovations more rapidly.
“We remain hopeful there is opportunity to build a bold, shared solution that best meets the needs of patients and Minnesota — both now and in the future,” a spokesperson for the University of Minnesota said in a Feb. 12 statement shared with Becker’s.
