Essentia Health

What it reported doing in 2024

Essentia health is organized and shall be operated exclusively for charitable, educational, scientific, and religious purposes exclusively for the benefit of, to perform the functions of, or to carry out the purposes of its supported organizations as listed on schedule a of form 990, all of which are organizations described in section 501(c)(3) of the internal revenue code of 1986.essentia health is the parent organization of an integrated health system that includes all entities that are owned or controlled, directly or indirectly, by essentia health (collectively, the "system"). The system serves patients in Minnesota, North Dakota, and Wisconsin. Headquartered in duluth, Minnesota, the system combines the strengths and talents of nearly 16,000 employees, including more than 2,300 physicians and advanced practitioners, who serve our patients and communities through the mission of being called to make a healthy difference in people's lives. The system, which includes many catholic facilities, is guided by the values of quality, hospitality, respect, joy, justice, stewardship, and teamwork. The system delivers on its mission by having patient-centered focus at 14 hospitals, approximately 80 clinics, six long-term care facilities, two assisted living facilities, three independent living facilities, several rehabilitation centers, seven ambulance services, 29 retail pharmacies, home health services, and one research institute. The system serves a predominantly rural population whose median incomes generally fall below the averages of the states where they live. The presence of our clinics and hospitals ensures that people with few economic resources do not have to drive an hour or more to receive basic (and in some cases lifesaving) medical care. The legal entities comprising the system file separate form 990s.at fiscal year ended june 30, 2025, the system's consolidated total operating revenue was $3,283,926,000 and consolidated income from operations was $71,629,000.the system's hospitals have a total of 1,202 licensed beds which provided over 215,000 hospital patient days and nearly 831,000 outpatient visits during the fiscal year ended june 30, 2025. The clinics had 2.2 million encounters during the same time period.during the fiscal year ended june 30, 2025, the system provided total community benefits of nearly $181 million which included costs of providing charity care, costs in excess of medicaid payments, medicaid surcharge, minnesotacare tax, community building activities and services, health professionals education, and research.

Financial Efficiency

• Mission deployment rate: 45.8%; rating input score 46
• Program expense ratio: 48.7%; rating input score 49
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: 0%; rating input score 0; 3rd percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 83.3%; rating input score 83; 31st percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 4.5%; rating input score 54; 54th percentile among comparable filings
• Total-asset coverage ratio: 2.6; rating input score 71; 71st percentile among comparable filings
• Liabilities to assets ratio: 0.44; rating input score 41; 41st percentile among comparable filings
• Officer compensation ratio: 4.6%; rating input score 20; 20th percentile among comparable filings

Growth

• Program expense growth: 15.2% per year; rating input score 100; 87th percentile among comparable filings
• Revenue growth: 12.4% per year; rating input score 100; 84th percentile among comparable filings
• Asset growth: 12.3% per year; rating input score 100; 79th percentile among comparable filings