HealthPartners and Essentia Health announce nonprofit merger

HealthPartners and Essentia Health have signed a definitive affiliation agreement to merge into a single nonprofit healthcare system. The combined entity, which will operate under the HealthPartners name, is expected to take effect on January 1, 2027, pending regulatory approval.

The new organization will be headquartered in Bloomington, Minnesota, and will manage 22 hospitals, over 135 clinics, and approximately 45,000 employees. The integrated network will serve roughly 2 million patients across Minnesota, Wisconsin, and North Dakota.

Leadership for the expanded system will be headed by HealthPartners President and CEO Andrea Walsh, while Essentia Health CEO David Herman will serve as president of the combined clinical care group operations. Executives stated that Essentia Health facilities will temporarily retain their branding before transitioning to the HealthPartners name.

The merger is driven by structural challenges in the healthcare sector, including rising care costs, increasing insurance premiums, declining reimbursement rates, and workforce shortages. Both organizations emphasized that patients and health plan members should not experience disruptions in care or insurance coverage during the transition.