Clarifying important facts about affiliation agreement between Essentia and First Care

After reading the latest commentary from city officials, it's important to clarify several facts regarding the 2009 affiliation agreement between First Care Medical Services and Essentia Health.

The City is “demanding” that Essentia “return” First Care to the City. However, it never belonged to the City. First Care transferred all its membership interest to Essentia. As a result, Essentia has been the sole owner of First Care since 2009. The City has no membership or ownership interest. To suggest otherwise is inaccurate.

In fact, the City’s current role is much the same as it was prior to 2009 — to appoint member(s) to the First Care board of directors. Also, Essentia and First Care granted the City a limited role to ensure certain services are provided. This is the City’s only involvement in the affiliation.

In September 2024, a neutral arbitration panel determined that Essentia was meeting the terms of the agreement. The panelists were decisive, noting in their findings:

• “The City does not have the right to terminate the Affiliation Agreement or compel the transfer of Essentia’s interest in First Care to the City.”
• “Essentia retains the absolute and unilateral right to make decisions regarding the financial, legal, and healthcare aspects of its hospitals and clinics.”

The City claims it is not rejecting the panel’s decision, even though a press release on Nov. 21 announced another attempt to end the agreement.

The City says it is committed to restoring local control of health care. We’re concerned that officials mean they’re committed to having the City control health care. They have used that exact wording — “City control” — repeatedly throughout this disagreement, arguing that the City should become the sole member of First Care and appoint the board of directors.

As challenges to delivering sustainable care in rural communities continue to grow, the need for a stable and experienced health system with a successful history of navigating these challenges and expanding access to care becomes critical.

That is why Essentia has remained unequivocal in its commitment to Fosston. To walk away now would be unfair to the patients who entrust us with their care. Instead, we are doing the opposite, improving that care and strengthening our relationships with community partners through key investments, such as the upcoming $12 million renovation of the emergency department at Essentia Health-Fosston. We also entered into a 10-year sports medicine agreement with Fosston Public Schools that has a value of more than $1 million; contributed $25,000 to help the Firefly Center for Art and Wellbeing create more space for mental health services; and have donated $45,000 to the Prairie Pines Childcare Center since 2021, among other significant contributions.

In recent months, we restored on-site diabetes testing and introduced a comprehensive weight-management service. The Essentia Health Living Center earned a four-star rating from the Centers for Medicare and Medicaid Services, the second-highest rating possible, and Essentia Health-Fosston was re-designated a Level IV Trauma Hospital.

We have made these investments because we believe in the future of Fosston, and we’re excited to be a part of that future. Essentia’s focus will remain on what truly matters — improving health care for the people who depend on us every day.