Facing ongoing pressures in rural health care, Essentia Health has released findings from an independent economic impact analysis showcasing its substantial contributions to regional economies across Minnesota, North Dakota, and Wisconsin. As the largest employer in the Twin Ports region, the organization contributes more than $4.5 billion in economic output and sustains approximately 14,800 jobs, both directly and through indirect channels. System-wide, Essentia supports over 24,000 positions and generates $7.69 billion in annual economic activity.
Dr. David Herman, CEO of Essentia Health, emphasized the organization’s dual role in delivering medical services and strengthening local economies. “Each year, our dedicated teams care for over 600,000 individuals,” he noted. “Beyond clinical care, our collaborations with community stakeholders are fostering employment and reinforcing regional economic resilience. This study reflects not only financial metrics but also the collective effort of employees, patients, and partners investing in one another’s well-being.”
The assessment was conducted by Northspan, an economic development consulting firm, using industry-standard modeling tools. The analysis incorporated data on employment levels, revenue streams, operational expenditures, and charitable giving. One key finding revealed a multiplier effect: each full-time position at Essentia leads to an additional 0.94 jobs in the surrounding area, effectively amplifying its workforce impact.
Local economic stimulation extends through vendor relationships in construction, medical supplies, logistics, and equipment. By offering stable, family-supporting employment, Essentia also boosts consumer spending in housing, dining, recreation, and hospitality sectors.
Rachel Johnson, president and CEO of APEX, praised Essentia’s consistent engagement. “Their involvement in revitalizing Downtown Duluth and workforce development programs demonstrates long-term commitment,” she said. “This report illustrates how a locally rooted health system can lead during difficult times and why community support for such institutions is vital.”
Beyond economic contributions, Essentia addresses critical social determinants of health. In Duluth and Superior, it has partnered on initiatives targeting substance use disorders, food insecurity, and housing instability. Over the past five years, the organization has directed more than $8.8 million to 133 nonprofit groups in the Twin Ports area. In Superior, it played a central role in a county-led mental health campaign, engaging youth in awareness efforts and securing federal grants for prevention programs.
Tony Sertich, president and CEO of the Northland Foundation, highlighted collaborative efforts to expand child care access and support youth wellness. “Essentia’s investments are transforming lives across Northeast Minnesota,” he said. “This report affirms their broad influence on the entire Northland region.”
Jeff Corey, executive director of One Roof Community Housing, commended Essentia’s tangible actions toward affordable housing. “Many discuss the need for more affordable units, but Essentia is delivering solutions,” he stated. Through a joint project, 52 units have been completed in Duluth’s Hillside neighborhood, with another 72 units planned at Brae View Senior Apartments.
The study included Essentia facilities in Duluth, Superior, Moose Lake, Hermantown, Proctor, and Cloquet under the Duluth Metropolitan Statistical Area. In this zone alone, the organization directly employs 8,087 full-time staff and supports an additional 6,781 jobs indirectly.
System-wide, Essentia’s community benefit activities totaled $490 million annually, covering charity care, uncompensated services, workforce training, research, and discounts for uninsured patients. As a nonprofit provider, it ensures round-the-clock emergency care regardless of patients’ financial status. Nationally, hospitals delivered $22.5 billion in uncompensated care in 2021, underscoring the broader sector’s role in equitable access.
In 2024, Essentia allocated over $1.5 million to 153 local organizations focused on food security, housing stability, mental health, child care, and youth development.
— news from Essentia Health
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Essentia Health highlights economic and community impact in Twin Ports
As rural health care systems continue to face significant challenges, Essentia Health is highlighting findings from a new third-party economic impact report that outlines the positive economic and community benefits Essentia brings to the communities it serves. As the top employer in the region, Essentia Health drives over $4.5 billion in economic output and supports over 14,800 jobs directly and indirectly in the Twin Ports. Across the communities it serves in Minnesota, North Dakota and Wisconsin, Essentia directly and indirectly supports over 24,000 jobs and generates $7.69 billion in total economic impact annually. n n”As a not-for-profit health care system, our exceptional teams at Essentia serve over 600,000 patients every year,” said Essentia Health CEO Dr. David Herman. “Beyond delivering high-quality health care, our work and partnerships with community members is helping create more jobs and having a major impact on the economic strength of the region. This report shows more than just Essentia’s economic impact – it underscores the difference thousands of employees, patients and community partners investing in one another makes.” n nUsing economic impact modeling software in accordance with industry best practices, the economic development firm Northspan analyzed employment, revenue, spending and charitable contribution data to determine Essentia’s total economic impact within the community. n nThe report found that Essentia has a ripple effect in local economies: Every full-time job created at Essentia spurs an additional .94 jobs in the community, effectively doubling Essentia ‘s employment impact. n nEssentia 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. n n“Essentia Health has been a consistent and committed partner and economic driver,” said Rachel Johnson, APEX president and CEO. “From our shared work to revitalize Downtown Duluth to investing in workforce-development programming, the team at Essentia has stepped up to make our communities healthier and economy stronger. This report tells the story of how a homegrown health care provider is leading amid challenging times – and the importance of coming together to support their continued success.” n nEssentia also supports the Duluth area through many partnerships and contributions that address the community ‘s most pressing health needs, including substance use, food security and housing. In Superior, Essentia has played a key role in a county-wide mental health initiative, engaging students in large-scale mental health awareness activities and securing federal funding for substance use prevention. Over the last five years, Essentia has invested more than $8.8 million across 133 nonprofit organizations in the Twin Ports. n n“We are grateful to partner with Essentia Health on initiatives that improve the lives and health of people in Northeast Minnesota, whether it’s expanding access to child care or supporting healthy youth development,” said Northland Foundation President and CEO Tony Sertich. “This report is a testament to their impact and investment across the entire Northland.” n n“There are a ton of people talking about the importance of creating more affordable housing in the Duluth area, and we need more people acting to help advance that goal,” said Jeff Corey, One Roof Community Housing executive director. “Essentia has stepped up with real solutions and meaningful support. Through our partnership, we’ve already built 52 units of affordable housing in Duluth ‘s Hillside Neighborhood at Brewery Creek, and we currently have another 72 affordable units planned through Brae View Senior Apartments. This report makes clear that Essentia’s leadership is critical and their impact goes well beyond health care in our community.” n nEssentia ‘s hospitals and clinics in Duluth and Superior, as well as Moose Lake, Hermantown, Proctor and Cloquet were included in the Duluth MSA for the purposes of this report.In this region, Essentia directly employs 8,087 full-time employees and supports another 6,781 employees indirectly. n nSystem-wide impact n nEssentia 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. n nAs 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. n nAnnually, Essentia provides $490 million in charity and uncompensated care, workforce education, research and discounts to uninsured patients.