HealthPartners, Essentia Health announce plans to merge, effective Jan. 2027

Allie Johnson Tue, September 29, 2026 at 10:50 PM UTC

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The Brief

Minnesota-based nonprofit health systems HealthPartners and Essentia Health announced Tuesday they are planning to merge.

The combined organization, which will be called HealthPartners, will include 22 hospitals, more than 35 clinics and 6,000 clinicians across Minnesota, North Dakota and Wisconsin.

If the merger obtains regulatory approval, HealthPartners and Essentia said they’ll begin operating as a single organization effective Jan. 1, 2027.

(FOX 9) - Two more Minnesota-based healthcare providers are planning to merge, potentially creating one of the largest nonprofit healthcare systems in the upper Midwest region.

HealthPartners-Essentia Health merger

What we know

HealthPartners and Essentia Health announced Tuesday their boards of directions have approved an agreement to combine their organizations. The combined organization, which will be called HealthPartners, will include 22 hospitals, more than 35 clinics and 6,000 clinicians across Minnesota, North Dakota and Wisconsin, according to a news release.

Essentia facilities will keep their Essentia Health name while operations are integrated, the news release said. HealthPartners and Essentia said patients and members should not experience any changes or interruption to their care or coverage as a result of the merger.

"I think Minnesota, similar to communities across the country, are really at a turning point," HealthPartners President and CEO Andrea Walsh told FOX 9.

Walsh and Essentia CEO David Herman on a call with reporters Tuesday said with their organizations as one, they can better handle future financial pressures.

New Medicaid requirements mean hospitals are bracing for a potential influx in uninsured patients. And previous reporting shows health systems have said Medicare reimbursements are lacking.

"There are challenges in reimbursement. There are challenges as the cost of care goes up," Herman said. "But if you can be more efficient, more effective, and keep people healthier, that certainly helps address it."

Locations of HealthPartners and Essentia Health hospitals and clinics.(Supplied)

Dig deeper

The two organizations cited rising healthcare costs as a reason for the merger, saying that combining their capabilities and resources allows them to better innovate, improve affordability and results in more choices for patients and better coordination of care.

Big picture view

The proposed merger comes as several other large healthcare regional systems are also planning to combine.

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Earlier this month, North Memorial Health finalized a merger with South Dakota-based Sanford Health. Minnesota-based Allina Health is also set to join California-based Sutter Health, but Minnesota Attorney General Keith Ellison has yet to approve that merger.

The attorney general’s office must approve the merger, according to state statute. Ellison said his office will investigate the impact on affordability, and is asking for public input.

"We’ll evaluate if there are any anti-competition elements to this," Ellison said. "We’ll also evaluate, as we have to under the statute, if this will be in the best public interest."

Leadership structure for new HealthPartners organization

What they're saying

Current HealthPartners President and CEO Andrea Walsh will lead the new organization, while Essentia CEO David Herman will serve as president of combined clinical care group operations, according to the news release.

"This combination is about doing more for the people and communities who count on us," Walsh said in a statement. "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."

In his own statement, Herman added: "Our organizations share similar missions and values, deep roots in this region and a focus on improving health and well-being. As a combined nonprofit health system, we will be able to better innovate and grow our workforce. That strong foundation will make us even better partners for our patients, working together to help people live their healthiest lives, wherever they call home."

A coalition of healthcare unions including SEIU Healthcare MN & IA, AFSCME Council 65, the Minnesota Nurses Association, and OPEIU Local 12 released a statement Tuesday.

"Today’s news feels a bit like Groundhog Day, with Minnesota healthcare workers and community members facing the fear of what could come from the latest potential healthcare consolidation," the statement read in part.

The coalition said they are worried about cuts to jobs and services. The CEOs said, as of now, they do not plan to close any clinics.

What's next

The merger is pending regulatory approval. If the merger is approved, HealthPartners and Essentia said they’ll begin operating as a single organization effective Jan. 1, 2027.

The Source

This story uses information from a HealthPartners and Essentia Health news release and the merger website.

Original Article on Source

Source: “AOL Money”