Capsules

Essentia Breaks Ground on New Virgina, Minnesota, Emergency Department

Construction recently began with a groundbreaking ceremony on a new emergency department at Essentia Health-Virginia. It is the start of a $13 million facility that will improve the patient experience and strengthen emergency care. “Essentia Health is proud to invest in this project, ensuring high-quality emergency care is easily accessible on the Iron Range,” said Sam Stone, Essentia Health-Virginia administrator. “The expanded emergency department will help us better meet the needs of our patients and families by adding additional rooms for patient care, enhanced safety and security measures and new technology. From our construction and emergency department teams to legislators and donors, we are grateful to the people driving this project forward.” 

The project will nearly double the size of the current emergency department, adding five exam rooms and a dedicated behavioral health suite, supporting timely and specialized care. The new emergency department will include enhanced safety measures for patients and staff, new state-of-the-art technology and dedicated registration and lobby space for patients and families. Architectural services are being provided by DSGW Architects in Duluth and construction services are being provided by McGough Construction.

“This is a meaningful investment for our hospital, our medical teams and for the entire community,” said Brian Junnila, MD, emergency medicine physician and section chair at Essentia Health-Virginia. “This expansion will support timely patient care and strengthen behavioral health resources in Virginia. We’re grateful for all the work that has brought us to this point and look forward to seeing this project come to life.” 

The project will be completed in phases to ensure continuity of care throughout the duration of construction. All non-emergent patients and visitors, including urgent care, surgery and radiology patients, should use the west entrance of the hospital. Patients seeking emergency care should continue to use the emergency entrance. 

Funding for the project comes from Essentia Health, Essentia’s regional foundation and donors and a $3.3 million contribution from the Iron Range Resources and Rehabilitation Board. Construction is expected to be completed in spring 2027.

MDH Expands Non-opioid Pain Treatment Access Tool

The Minnesota Department of Health has recently updated its innovative tool designed to assist Minnesotans in finding non-opioid pain management options. NOPAIN MN is a comprehensive, searchable public resource that maps the locations of non-opioid pain management providers across the state. Created in conjunction with Hennepin Healthcare the site now maps the locations of over 17,000 statewide options and is the only resource of its kind in any state nationwide. The list of providers includes a wide range of evidence-based care, including physical therapy, psychotherapy, chiropractic care, acupuncture, yoga, massage therapy and more.

“Chronic pain can severely impact people’s wellbeing and quality of life. People want effective ways to manage their pain that do not rely on opioids. This tool can be that first step to finding safe effective pain treatment alternatives right in their communities,” said Minnesota Commissioner of Health Dr. Brooke Cunningham.  

Chronic pain is so common, affecting nearly one in four adults, that many have advocated for considering it as the sixth sense. The NOPAIN MN map highlights services that have been demonstrated to reduce chronic pain and improve quality of life. As alternatives to using opioid prescriptions for pain management, these often-underused options can provide effective treatment without the risk of substance misuse.

“A lot of people are surprised to find the number of providers who can help with pain present within neighborhoods throughout the state,” said Integrative Health Program Manager Catherine Justice with Hennepin Healthcare Integrative Medicine. “NOPAIN MN helps connect people with a whole range of evidence-based pain care options so that they can find the strategy that works best for them.”

The tool presents an opportunity for providers to strengthen Minnesota’s network for whole-person, patient-centered pain care. Local providers can create a free provider profile at nopainmn.org to join the community and support patients.  

Expanding access to alternative pain management is a crucial piece of Minnesota’s multi-pronged approach to the opioid crisis. By pairing prevention tools like NOPAIN MN with efforts such as widespread naloxone distribution and increased access to treatment, the state is successfully saving lives.

Allina Health and Sutter Health Merger Moves Forward

Allina Health and Sutter Health recently announced that they have approved a definitive agreement, taking the next step toward creating an integrated nonprofit health system. The organizations will expand local access to high-quality, affordable care while leading nationally in digital and technological advancements that transform care and meaningfully improve the experiences of patients and caregivers. 

“We look forward to continuing to learn from one another and working together to shape a future where health care is more connected and easier to navigate for every patient,” said Warner Thomas, president and CEO of Sutter Health. “Health care is becoming more complex and demanding, both for patients trying to access care and for the people delivering it.”  

“This important milestone brings us one step closer to our goal of partnering to enhance care, support our teams and expand clinical capabilities and research,” said Lisa Shannon, president and CEO of Allina Health. “With our combined expertise, complementary strengths and aligned missions and visions, I am confident we will be well-positioned to meet the evolving needs of our patients and communities now and well into the future. At a time when health care is facing great challenges, I have been heartened by the response to our bold and proactive plan to strengthen the future of healthcare.”  

The recent agreement formalizes plans for an investment of more than $2 billion in Minnesota and western Wisconsin. Goals for the funds include:

• Establishing new ambulatory care locations and expanding specialty institutes
• Investments in AI and digital solutions to reduce administrative burdens
• Increased focus on prevention, to improve community health.
• Installing innovative consumer digital tools to streamline scheduling
• Accelerating physician and clinician recruitment
• Increasing research and clinical trials to more directly impact patient care

Regulatory review to complete and close the transaction is expected by the end of 2026. Allina Health will become the Upper Midwest Division of Sutter Health, maintaining the Allina Health name, brand and regional headquarters in Minneapolis. Sutter Health will maintain its headquarters in California.

Trump Tightens Screws on Medicaid Exemptions

CMS recently issued an interim final rule related to the Medicaid work requirements that are part of Trump’s “Big Beautiful Bill.” The new policies, which become effective 7/31/26 put significant additional strain on people with mental illness. Conservative estimates cite some 20 million Americans are at threat of losing Medicaid benefits if they do not put at least 80 hours a month into one of Trump’s work requirement areas — which include educational programs and community service. This equates to someone working 40 hours a week putting ½ of their monthly income into health care coverage. The new rules will lead to many more millions of vulnerable Americans losing Medicaid coverage. States are expected to monitor compliance on an individual basis and now have barely a month to modify plans they have worked on for over a year.

NAMI Minnesota (the National Alliance on Mental Illness) responded to this with a press release noting that the new rules will make it significantly harder for people with mental illnesses to maintain health coverage, putting thousands of Minnesotans at risk of losing access to essential mental health services.

Beginning in 2027, most adults who qualify for Medicaid through income-based eligibility and do not have dependent children will be required to meet new work reporting requirements and renew their coverage every six months instead of annually.

While Congress acknowledged that work reporting requirements may not be appropriate for many people living with mental illnesses and substance use disorders, the newly released federal regulations impose strict standards that go far beyond what advocates anticipated. Mental illnesses are often chronic conditions that fluctuate over time. Many people are able to work during periods of stability but require ongoing treatment and support to remain healthy and employed.

“These rules completely misunderstand the reality of living with a mental illness,” said Marcus Schmit, executive director of NAMI Minnesota. “Many Minnesotans are doing well today because they have access to treatment. Taking away their health coverage because they miss paperwork deadlines or cannot navigate a complicated reporting process is not accountability — it is shortsighted and cruel.” 

Fairview, U of M and M Physicians Reach $1 Billion 10-year Agreement

After a lengthy and contentious period of negotiations, which was finally settled through arbitration, Minnesota Attorney General Keith Ellison recently announced that the University of Minnesota, University of Minnesota Physicians (UMP) and Fairview Health Services have finalized an agreement on funding for the university’s health care programs, including the medical school. The agreement will take effect in January 2027 and some of the terms include:

• $1 billion from Fairview to invest in medical facilities at the University of Minnesota Medical Center over 10 years
• $50 million in annual financial support from Fairview to the medical school, with additional funding possible
• The university reaffirms UMP as the sole clinical practice group for medical school faculty and affiliated physicians
• The organizations will explore a new program ensuring patients in Greater Minnesota receive timely diagnosis and treatment for complex medical conditions
• New partnership structures to strengthen collaboration

University of Minnesota President, Rebecca Cunningham, MD, issued a statement that said “For more than 175 years, the University’s land-grant mission has been to serve the people of our state. These agreements build on that legacy, ensuring support for the University’s academic and research mission, helping to fund the University of Minnesota Medical School and research that leads to lifesaving cures. The agreements also will fund much-needed facilities investments, updates, modernization and maintenance of hospitals on the University’s Minneapolis campus and create opportunities for the University to explore new and innovative ways to sustain and strengthen health and health care in Minnesota.”

Ellison said the new agreements “Required compromise from all parties and will require goodwill, collaboration and clear communication going forward. This accomplishment marks a fresh start, and amid the highly complex challenges facing health care in Minnesota, is an occasion for optimism about our future.”

James Hereford, president and CEO of Fairview Health Services noted the agreement allows them to devote “full attention to serving patients, supporting health care professionals and addressing the significant issues that face health care delivery in Minnesota.”

Stratis Health Acquires National Rural Health Improvement Alliance

Stratis Health recently announced the acquisition of the National Alliance for Rural Health Improvement (NARHI), marking a strategic step in its longstanding commitment to advancing collaboration, sustainability and impact across the rural health landscape. As part of the transition, NARHI will move forward under a new name, the Rural Health Quality Improvement Exchange (RHQIX). 

RHQIX is a national, rural-focused quality improvement community, designed to facilitate professional development, shared learning, relationship-building and resource development across rural health care organizations throughout the United States. The member-driven organization is committed to advancing quality improvement efforts that strengthen health outcomes and support rural communities nationwide.

Drawing upon its national expertise and experience within the rural health community, RHQIX allows Stratis Health to leverage the strengths of its core mission and to meet the increasing demand to improve health care access, quality and outcomes in rural communities while supporting the professionals providing care within these systems.

“RHQIX represents an important step forward in our ongoing commitment to rural health care improvement,” said Jennifer Lundblad, president and CEO of Stratis Health. “Leveraging our decades-long national leadership, operational structures and expertise, RHQIX will serve as an essential platform for rural health during this time of national transformation and attention to the needs of providers and communities across the country.”

RHQIX serves the needs of the rural health community through education, professional development, peer networking, and practical tools and resources to support quality improvement initiatives. As part of Stratis Health, these member opportunities are expected to expand, evolve and meet the unique needs of individual communities.

“The National Rural Health Association congratulates Stratis Health on taking action to further develop the National Alliance for Rural Health Improvement (NARHI) organization. We are grateful for their leadership and efforts to advance rural health quality improvement nationwide,” said Alan Morgan, MPA, CEO of the National Rural Health Association.