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Minnesota AG Ellison reviews mergers proposed by Duluth health systems

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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.

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.

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.

The attorney general’s reviews are based on laws governing charitable assets, antitrust and a statute passed by the Legislature this year setting a pubic interest standard. Ellison can seek court intervention to block a proposed deal.

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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 (Greater Minnesota).

Fairview and Sanford called off their proposed merger in July.



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