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Essentia Health generates more than $4.5 billion in annual economic activity in the Twin Ports and supports nearly 14,900 jobs in the region, according to a new economic impact report that underscores the health system’s role as the area’s largest employer and one of its most influential economic drivers.
The study by Duluth-based economic development firm Northspan analyzed payroll, revenue, charitable giving and supply chain data. It found Essentia employs 8,087 people directly in the Duluth metropolitan area — which includes Superior, Hermantown, Cloquet, Moose Lake and Proctor — and indirectly supports another 6,781 jobs through business and household spending.
Across Minnesota, North Dakota and Wisconsin, Essentia employs about 15,500 people, including 2,350 physicians and advanced practitioners. The system supports more than 24,000 workers across the three states when indirect jobs are factored in. Its annual economic output totals $7.69 billion.
That footprint places Essentia among the leading health systems in the Upper Midwest. Mayo Clinic in Rochester, Minn., employs more than 76,000 people, while Sanford Health, headquartered in Sioux Falls, S.D., employs about 50,000. St. Luke’s in Duluth employs roughly 3,000.
Northspan’s analysis found that every full-time job at Essentia generates nearly one additional job in the community. The system’s economic activity includes construction, medical equipment and local businesses ranging from restaurants to real estate.
“As a not-for-profit health care system, our exceptional teams at Essentia serve more than 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 are helping to create more jobs and having a major impact on the economic strength of the region.”
Rachel Johnson, president and CEO of the Area Partnership for Economic Expansion (APEX), said Essentia has been “a consistent and committed partner and economic driver.” She pointed to collaborations on downtown revitalization and workforce development as examples of the system’s broader community role.
The report outlined Essentia’s growing role in addressing social issues such as housing, food insecurity and mental health. Over the past five years, Essentia has invested $8.8 million across 133 nonprofits in the Twin Ports.
One Roof Community Housing Executive Director Jeff Corey credited Essentia for helping deliver concrete solutions in Duluth’s housing market. Together, the organizations built 52 affordable units in the Hillside neighborhood and are planning 72 more senior units at Brae View Apartments.
“Essentia has stepped up with real solutions and meaningful support,” Corey said. “This report makes clear that their leadership is critical, and their impact goes well beyond health care.”
In Superior, Essentia has played a central role in a countywide mental health initiative, helping secure federal funding for substance use prevention and engaging students in awareness programs.
“We are grateful to partner with Essentia Health on initiatives that improve the lives and health of people in Northeast Minnesota,” said Northland Foundation President and CEO Tony Sertich. “This report is a testament to their impact and investment across the entire Northland.”
As a not-for-profit system, Essentia provides care regardless of a patient’s ability to pay. Nationally, U.S. hospitals delivered $22.5 billion in uncompensated care to uninsured people in 2021. Essentia’s share amounts to $490 million annually in charity care, workforce education, research and patient discounts.
Like other health systems, Essentia faces headwinds including workforce shortages, inflation and reimbursement pressures. Rural hospitals across Minnesota have closed or consolidated in recent years, raising concerns about access to care. The report’s authors said Essentia’s ability to sustain services while expanding partnerships shows its importance as a stabilizing force.
Regional economists note that health care remains one of the most resilient sectors in northern Minnesota. Essentia’s presence is expected to stay central as Duluth pushes for downtown revitalization, expands housing options and attracts new residents.
Essentia operates 14 hospitals, 80 clinics, 30 retail pharmacies, six long-term care facilities, two assisted living facilities, three independent living facilities, seven ambulance services and a research institute. The system is headquartered in Duluth.
