Merger talks end between Essentia Health and CHI

Essentia Health and CommonSpirit Health have chosen to end negotiations for CommonSpirit’s facilities in Minnesota and North Dakota to join Essentia.

The two organizations signed a letter of agreement in January, and began exploring the opportunity for Essentia to assume control of 14 facilities and numerous clinics throughout Minnesota and North Dakota. Essentia had already taken over Mercy Hospital, in Moose Lake, Minn. in 2020. This merger would have affected CHI St. Alexius Health facilities in North Dakota, including Carrington Medical Center, New Rockford Family Clinic and Devils Lake Hospital.

“While we share a similar mission, vision, values and strong commitment to sustainable rural health care, CommonSpirit and Essentia were unable to come to an agreement that would serve the best interests of both organizations, the people we employ and the patients we serve,” officials from both health systems said in a joint statement on May 18. “We’ve strengthened our relationship throughout this process and remain committed to possibilities in the future.”

While it’s not clear what caused the deal to fall through, nurse and healthcare worker members of the Minnesota Nurses Association had filed a petition with Essentia Health two weeks prior, expressing concern about the company’s takeover of Catholic Health Initiatives (CHI) hospitals. The employees held a virtual press conference May 6, asserting that the merger would result in reduced access to patient care.

“We’ve seen what Essentia did when they took over the hospital in Moose Lake,” said Tristin Eastvold, a Registered Nurse at the Moose Lake hospital. “Ever since the takeover, we’ve lost numerous staff, causing shortages in how we care for patients. We don’t want CHI’s hospitals and clinics to lay off workers, cut the services they offer, or close entirely.”

Essentia Health is an integrated health system serving patients in Minnesota, Wisconsin and North Dakota. Headquartered in Duluth, Minn., Essentia’s umbrella encompasses 14 hospitals, 71 clinics, six long-term-care facilities, three assisted living facilities, three independent living facilities, five ambulance services and one research institute.

CommonSpirit Health is a nonprofit, Catholic health system created in February 2019 by Catholic Health Initiatives and Dignity Health. With its national office in Chicago, CommonSpirit operates 139 hospitals and more than 1,000 care sites across 21 states. For the time being, the above mentioned facilities will continue to operate under the CHI St. Alexius Health brand.