Essentia Health Responds To Fosston Terminating Agreement Saying It Isn’t Going Anywhere

Essentia Fosston 092624

FOSSTON, Minn. (KVRR) —  The back and forth battle over healthcare in Fosston, Minnesota continues with Essentia Health telling the city it is staying.

The city council voted last month to terminate the 2009 agreement between the city, First Care Medical Services and Essentia Health.

In its response, Essentia Health asserts that Fosston can only terminate its own participation in the affiliation agreement and cannot force the transfer of FCMS to the city.

They also say Essentia Health will continue to own and operate First Care Medical Services which includes the hospital, nursing home and neighboring clinics.

In September, an arbitration panel ruled in favor of Essentia in a dispute over its closure of labor and delivery services in 2022.

The council says there has been a reduction in provider availability and wage gaps impacting healthcare staff.

Essentia Health issued a statement through a press release:

“The City of Fosston has made its decision, and we look forward to engaging with the community to ensure we maintain high-quality health care in Fosston well into the future. The arbitration ruling in September, as well as legal precedent, permit us to continue to follow our mission in serving our patients, colleagues and the community.

The only thing the City can do is terminate its own involvement in the affiliation agreement. In light of the City’s refusal to work with Essentia and its desire to withdraw from the agreement, Essentia will accept the City’s withdrawal.”

Fosston city officials disagree with Essentia’s interpretation of the agreement and expect to release a full statement on their next action on Thursday.

Categories: Health, Local News, Minnesota News