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Duluth-based Essentia Health has exited formal mediation with the University of Minnesota — but says it will remain involved in talks about the University’s medical school.

In an interview, University of Minnesota President Rebecca Cunningham did not rule out the involvement of an additional health system partner. 

She said her main concern remains the University’s medical school, which educates 70 percent of the state’s physicians.

“We’re in continued conversations, both with Essentia as well as others, to ensure that we can continue this vital asset for the state,” Cunningham said.

The announcement is the latest snag in the 

 as the University of Minnesota restructures its health system. Since 1997, the University has partnered with Fairview Health Services. That partnership is set to expire automatically at the end of 2026.

 in 2023, after disagreement amid an ill-fated merger between Fairview and South Dakota-based Sanford Health. 

 its current partner, Fairview, with Duluth-based Essentia Health. That proposal 

Cunningham said the U is still working toward an agreement and it may look much different than the current partnership.

“We’ve had one model here in the state of Minnesota for the past three decades, and now we’re exploring a multitude of other models and partnerships,” Cunningham said.

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Duluth-based Essentia Health has exited formal mediation with the University of Minnesota — but says it will remain involved in talks about the University’s medical school.


Essentia Health exits mediation with University of Minnesota over medical system

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