HealthPartners, Essentia Health Plan 22-Hospital Midwest Merger

The organizations said their respective boards have approved an affiliation agreement, with the combination expected to take effect January 1, 2027, pending regulatory review.

Minnesota-based nonprofit health systems HealthPartners and Essentia Health have announced plans to combine, creating a 22-hospital integrated health system across Minnesota, Wisconsin and North Dakota, subject to regulatory approvals.

The organizations said their respective boards have approved an affiliation agreement, with the combination expected to take effect January 1, 2027, pending regulatory review. The combined organization will operate under the HealthPartners name, while Essentia facilities will retain their existing brand identities.

The proposed merger is intended to address rising healthcare costs and growing demand for services. The organizations also plan to expand investments in integrated care, including remote patient monitoring, data analytics and other digital health capabilities.

Andrea Walsh, president and CEO of HealthPartners, is expected to lead the combined organization. Essentia Health CEO David Herman, M.D., will serve as president of the combined clinical care group operations.

The two systems said patients will not experience changes to their care during the integration process. HealthPartners’ 1.6 million medical and dental plan members are also expected to maintain their existing coverage and benefits. The organizations said they expect to continue relationships with contracted providers across their five-state region and nationwide through Cigna.

Together, HealthPartners and Essentia employ about 45,000 people, including more than 6,000 clinicians. The organizations said the combination could create broader career pathways and academic partnerships. They also said they will work with labor organizations and honor existing collective bargaining agreements.

HealthPartners operates eight hospitals, more than 80 clinics and a health insurance business serving five states. The system reported $9.3 billion in operating revenue and a $95.9 million operating loss in 2025. Essentia operates 14 hospitals, 78 clinics and post-acute care facilities across Minnesota, Wisconsin and North Dakota. It reported $3.3 billion in revenue and $71.6 million in operating income for the fiscal year ended June 30, 2025.

The proposed transaction has drawn concerns from the Minnesota Nurses Association, which called for a transparent review of its potential effects on healthcare costs, staffing, insurance networks, and patient access. The union also called for commitments involving existing labor agreements to be legally protected.

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