Essentia Health highlights economic and community impact on Iron Range

As rural health care systems continue to face significant challenges, Essentia Health is highlighting findings from a new third-party economic impact report. As one of the top employers in the region, Essentia Health drives over $583 million in economic output and supports 1,696 jobs on the Iron Range. Prepared by the economic development firm Northspan, the study underscores the value Essentia brings to the Iron Range, both as a leader in rural health care and as an important partner in economic growth and community vitality.

"As a nonprofit health care system, Essentia delivers exceptional care to tens of thousands of Iron Range patients every year," said Essentia Health-Virginia Administrator Sam Stone. "This report shows that our team’s work also has a major impact on community health and economic success across the region. From the new $13 million commitment to expand the emergency department in Virginia to the grants supporting the local United Way chapter, we’re proud to do our part to spur new job growth, support family-sustaining jobs and create healthier communities."

The report found that Essentia has a ripple effect in local economies: Every job created at Essentia spurs an additional .94 jobs in the community, effectively doubling Essentia's employment impact. With hospitals in Virginia, Aurora and Deer River, and clinics in Babbitt, Ely, Hibbing and Grand Rapids, Essentia directly employs 849 full-time employees and supports another 847 employees indirectly across this region.

Essentia generates additional economic growth through partnerships with local businesses, from construction and medical equipment to supply chain and logistics. And by supporting family-sustaining jobs, Essentia fuels local spending on housing, dining, recreation, hospitality and more.

"Access to high quality health care is foundational to our communities and crucial to the future of the Iron Range," said Iron Range Resources & Rehabilitation Commissioner Ida Rukavina. "This report shows that Essentia does more than just care for Iron Rangers: They play an important economic role in our communities by supporting good-paying jobs in and outside of their hospitals and clinics. As rural health care continues navigating new challenges, we must stand together with the organizations that support the health and economic strength of communities across the region."

Essentia Health also supports the Iron Range through many community partnerships and contributions. In the last several years, Essentia has partnered with the Mesabi East School District and the Mesabi East Environmental Education Center to support teen mental well-being and increase access to affordable and nutritious foods. Essentia also supported the launch of a Boys and Girls Club in Hibbing and worked with organizations like the Minnesota Discovery Center and the United Way to provide mental health resources, counseling and volunteer opportunities. Over the last five years, Essentia has invested more than $1 million across 56 organizations on the Iron Range, impacting more than 416,000 people across the region.

Essentia worked with Northspan to conduct research using economic impact modeling software in accordance with industry best practices. The firm analyzed employment, revenue, spending, and charitable contribution data for the study.

System-wide impact

Essentia Health has a significant economic and community impact across North Dakota, Minnesota and Wisconsin. Annually, Essentia supports over 24,000 jobs and generates $7.69 billion in total economic impact. In 2024, Essentia invested over $1.5 million across 153 local organizations that support healthy communities through food security, stable housing, mental health resources, child care and healthy youth development.

As a not-for-profit health care provider, Essentia cares for patients regardless of their ability to pay, including by providing 24-7 access to emergency care. According to national studies, hospitals provided $22.5 billion worth of uncompensated care to uninsured people in 2021.

Annually, Essentia provides $490 million in charity and uncompensated care, workforce education, research and discounts to uninsured patients.