Attorney General Keith Ellison is launching reviews of separate merger deals proposed this summer by Essentia Health and St. Luke's, two prominent hospital operators based in Duluth that are trying to combine with Wisconsin-based health systems.
Minnesota AG Ellison to review mergers proposed by health systems in Duluth and Wisconsin
Essentia Health has proposed merging with Marshfield Clinic while St. Luke's has a deal to combine with a different health system based in Wausau.
October 4, 2023 at 2:04PM
In July, Essentia Health announced a deal to merge with Marshfield Clinic, a well-known health system that includes a medical research institute and a health insurance division. Essentia's chief executive would take the top job at the combined nonprofit group.
That same month, St. Luke's announced plans to merge with Aspirus Health. The combined nonprofit would make Wausau, Wis., its headquarters.
Ellison's review will include a community meeting for public input scheduled for Oct. 25 at the University of Minnesota Duluth campus. His office conducted a series of public meetings earlier this year over Fairview Health Services' proposed merger with Sanford Health, a nonprofit group based in South Dakota.
"Every Minnesotan deserves the opportunity to provide input on health care transactions that affect them," Ellison said in a statement.
Essentia Health operates 14 hospitals, 78 clinics, six long-term care facilities, six assisted-living and independent-living facilities, seven ambulance services and one research institute, according to background materials from the attorney general. The nonprofit employs about 15,000 people.
Marshfield Clinic Health System includes 11 hospitals, 60 clinics and more than 12,000 employees with headquarters in Marshfield, Wis.
"We appreciate the opportunity to highlight how ... this integration will strengthen our two mission-driven health systems," Essentia Health said in a statement. "Together, we will be better positioned to navigate the significant challenges facing rural health care and ensure that high-quality, sustainable care is available close to home for our patients."
St. Luke's Duluth operates two hospitals and more than 40 clinics across a system that employs about 3,000 people. Aspirus Health includes 17 hospitals, 75 clinics and about 11,000 employees.
"We are excited about the potential affiliation and the value it will bring to the patients of our region," St. Luke's said in a statement. "We look forward to participating in the Attorney General's event."
The attorney general's reviews are based on laws governing charitable assets, antitrust and a statute passed by the Legislature this year setting a public interest standard. Ellison can seek court intervention to block a proposed deal.
The Oct. 25 community meeting is scheduled for 5:30 to 7 p.m. People can register online to speak, although advance sign-up is not required.
The attorney general also is taking public input through an online form and phone calls at 651-296-3353 (metro area) or 800-657-3787.
Fairview and Sanford called off their proposed merger in July.
The proposal suggests removing the 20-year protection on the Superior National Forest that President Joe Biden’s administration had ordered in 2023.
