Duluth, Minn.-based Essentia Health and Minneapolis-based University of Minnesota have proposed forming a nonprofit healthcare organization to better serve residents of the state.
Four things to know:
1. The new entity would invest $1 billion over five years, according to a Jan. 24 university news release.
"Essentia Health has a long and committed partnership with the University of Minnesota," Essentia CEO David Herman, MD, said in a Jan. 24 health system news release. "With nearly 70% of all Minnesota physicians having been trained at the University, we know that continuing to deliver excellent patient outcomes while building a sustainable healthcare future rests on the foundation of a strong medical school."
2. The integrated care model would combine the strengths of both organizations to address challenges such as rising costs, declining reimbursements and workforce shortages. The partnership would also ensure financial support for the University of Minnesota Medical School, the university release said.
3. The proposed model aims to expand care access, particularly in rural and tribal communities, and to scale healthcare technology across a large system.
4. The university's current agreement with Fairview Health Services ends in 2026, and the proposal has been shared with Fairview.
"We are at an inflection point in our relationship with Fairview Health Services that requires an urgent and innovative solution," University of Minnesota President Rebecca Cunningham, MD, said in the release. "We envision this model as a new path forward in our relationship, one that builds on the momentum all those at M Health Fairview have built and that continues to put patients first, consistent with our organizations' shared priorities."