City of Fosston Files Motion To End Essentia Health Hospital Agreement

The City of Fosston has filed a motion in Polk County District Court seeking the end of an affiliation agreement with Essentia Health as the city’s healthcare provider for the local hospital.

In a release from the City of Fosston’s attorney, Fosston city officials claim that Essentia has broken many promises that were a part of the agreement and that services at the hospital have declined over the last few years. This suit comes after Essentia ended labor and delivery services at the hospital in 2022.

City officials believe the Fosston community has been clear and consistent that they no longer wish to have Essentia in charge of their healthcare.

“We met with Essentia in some private discussions and then went through mediation with them,” said Fosston Mayor Jim Offerdahl. “And then at the point where arbitration should occur, they have not agreed to participate in arbitration. So, at this point we’re waiting for scheduling for the hearing in district court, and the hearing will be held and we expect the court to compel arbitration.”

The City of Fosston pursued arbitration last year to end their agreement with Essentia Health, but in a split decision, arbitrators found no breach of contract with Essentia ending labor and delivery services at the hospital. Essentia claims that Fosston officials are refusing to accept the ruling and are misleading the residents of the city.

“Just last year, an independent arbitration panel ruled in favor of Essentia Health, and that panel plainly said that we’re meeting the terms of our affiliation agreement and that we’re continuing to honor our commitment to the City of Fosston,” said Louie St. George, Essentia Health External Communications Manager. “The panel also noted that the city does not have the right to terminate the affiliation agreement, and that comes from really the only independent voice that has been a part of this discussion since it’s been going on. So, our focus is going to continue to be on moving forward, investing in our care teams here in Fosston, our campus, and this community so we can continue to provide our patients with the best possible care now and into the future.”

Essentia Health announced earlier this year that they plan on investing $12,000,000 into renovating Fosston’s emergency department and just signed a 10-year sports medicine agreement with Fosston Public Schools.