The Dakota Clinic/Innovis Healtha for-profit physician group that owns a taxable not-for-profit hospitalwill become a not-for-profit subsidiary of the nine-hospital system Essentia Health, Duluth, Minn., as of Jan. 1, the organizations announced. Under the deal, the Dakota Clinic, based in Fargo, N.D., with 22 clinics, will convert to not-for-profit status and nearly all of its doctors, roughly 160 physicians, will become employees of the new subsidiary, said Greg Glasner, the clinics chairman.
Glasner, 43, will become chief executive officer of the not-for-profit Essentia subsidiary, which will include the clinics 74-bed hospital in Fargo, Glasner said. Larry Solberg, 61, CEO of Dakota Clinic/Innovis Health, will remain after Jan. 1 to aid in the transition, but his specific role has yet to be determined.
Glasner said the clinic and its hospital struggled to compete against nearby integrated not-for-profit health systems and that the deal provides much-needed access to capital. We clearly need to grow, he said. The physician-owned Dakota Clinic lacked the access to capital available to its not-for-profit competitors, he said. -- by Melanie Evans
What do you think? Post a comment on this article and share your opinion with other readers. Submit your letter to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.