Essentia

Unique non-profit pharmaceutical company has nearly 60 members, representing 1 of 3 U.S. hospital beds LEHI, Utah, Dec. 5, 2024 /PRNewswire/ -- Civica, a nonprofit pharmaceutical company created to prevent and mitigate drug shortages, announced today that four new members have joined the company in helping protect patients from the impact of supply interruptions of essential generic sterile injectable medicines. These new members include Winona Health (Minnesota), Boulder Community Health (Colorado), Stanford Health Care (California), and Essentia Health (Minnesota). "Civica provides a consistent supply of essential, high-quality, generic medicines at a transparent price," said Ned McCoy, President and CEO of Civica. "Our model allows hospitals of all sizes, from small independent hospitals to large systems, to ensure supply and price stability, helping them to serve their patients." Drug shortages are a persistent challenge to the U.S. healthcare industry, with the U.S. Food and Drug Administration reporting hundreds of drugs on regular shortage, including many sterile injectables frequently used in urgent care settings. In these cases, hospital staff may use therapeutic substitutions that may be less effective or less safe. "Our community has counted on Winona Health for more than 130 years," said Jill Ender, PharmD, Director of Pharmacy, Winona Health. "Partnering with Civica helps us ensure we'll continue to have access to the pharmaceutical resources we need to care for people - regardless of external circumstances that may affect our normal supply chain." Under the Civica model, hospitals enter market-stabilizing contracts directly with the company, avoiding middlemen players. Doctors and pharmacists at member hospitals choose the drugs that Civica provides. Civica offers all members the same cost-plus price for these products, regardless of hospital size, and strives to provide 6 months of buffer inventory. Further, the company prioritizes U.S.-based suppliers, helping to ensure high-quality products. "Essentia Health is excited to join Civica and continue to support more reliable medication supply chains worldwide," said David Sperl, Acute Care Pharmacy Director, Essentia Health. "At Essentia, we are called to make a healthy difference in people's lives, and this is another great step in meeting that mission with our communities." Civica was formed in 2018 by U.S. health systems to address the crisis of drug shortages by delivering a dependable, safe, and affordable supply of essential generic injectable medicines that are required to provide patient care in every hospital in the country. Since its founding, Civica has grown its membership and expanded its product offerings. Today, nearly sixty health systems are Civica members, which include approximately 1400 hospitals that represent over 30% of all licensed U.S. hospital beds. The company currently delivers about eighty drugs, including antibiotics, cardiovascular and pain medications used in urgent care settings, chosen by their member hospitals because they are at risk of shortage. About Civica Civica is a non-profit generic pharmaceutical company established to address drug shortages. It was founded by a group of U.S. health systems and philanthropies who, after more than a decade of chronic shortages, recognized that the market was not self-correcting and that a different approach is required. Civica works to deliver a safe, stable, and affordable supply of essential medicines to U.S. patients. Learn more at civicarx.org and civicascript.com. MEDIA CONTACT : Liz Power [email protected] +1 860 501 3849 SOURCE CivicaRx WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In GET STARTED

"We have decided that a combination at this time is not the right path forward for our respective organizations, colleagues and patients," the health systems said in a statement. Duluth, Minnesota-based Essentia Health and Marshfield, Wisconsin-based Marshfield Clinic Health System have scrapped their plan to merge into a 25-hospital Midwest system. The two nonprofit health systems said in a statement that they have "engaged in meaningful discussion" over the last two years about how the organizations could combine their unique strengths. "We have decided that a combination at this time is not the right path forward for our respective organizations, colleagues and patients," the health systems said in a statement posted to Essentia Health's website Friday. "We will continue to seek opportunities for collaboration as two mission-driven, integrated health systems dedicated to sustainable rural health care. Our organizations have great respect for one another, and we each remain committed to strengthening the health of our communities as we deliver high-quality, compassionate patient care," health system leadership said. Essentia Health and Marshfield Clinic shared plans in October 2022 to investigate a potential merger. The health systems signed an integration agreement in July that would comprise a network of 3,800 providers and 150 sites of care, including 25 hospitals. The proposed combined entity would serve over 2 million rural and mid-urban Midwest residents. Three months ago, Minnesota Attorney General Keith Ellison said he was reviewing the pending health system merger under a recently passed state law that gave his office additional authority to determine whether the deals are in the public interest. Nonprofit Essentia Health operates 14 hospitals, 77 clinics, six long-term care facilities and other operations in its home state of Minnesota as well as North Dakota and Wisconsin. The nonprofit integrated health system employs 15,000 people and serves patients in Wisconsin, North Dakota and Minnesota. Essentia Health CEO Dr. David Herman said the health system continues to focus on "building innovative partnerships and transforming care for its communities." Marshfield Clinic Health System often describes itself as one of the largest rural integrated systems in the country. The nonprofit employs over 12,000 people across 11 hospitals, a health plan, research and education programs and other care locations. It is geographically adjacent to Essentia, operating throughout Wisconsin and in parts of Michigan. “Essentia Health and the Marshfield Clinic Health System are high-performing, well-respected, community-focused organizations. Those similarities served as the basis for efforts toward a combination," MCHS Interim CEO Dr. Brian Hoerneman said in a statement. "As we now move our separate ways, Marshfield Clinic looks forward to advancing our 100-year legacy of providing compassionate and accessible care to the communities we serve," Hoerneman said. This is the second time in just over four years Marshfield Clinic Health System has been in merger discussions that failed. In December 2019, Gundersen Health System and Marshfield Clinic Health System decided to remain separate companies after several months of discussions to integrate, the Marshfield News Herald reported. Public financial disclosure documents show MCHS reported in its third quarter report that its operating earnings before interest, depreciation and amortization (EBITDA) for the first nine months of fiscal year 2023 was at a 0.1% margin, down from 0.8% the year before. MCHS’ operating EBITDA dropped from $18.4 million the year before to $2 million this year, a decrease of $16.4 million. The system generated an operating loss of $133.5 million (‐5.8% margin), compared to an operating loss of $92.6 million in the prior year, a decrease of $40.9 million. MCHS generated total revenues of $2.32 billion compared to $2.28 billion generated in the prior year, an increase of $41.4 million. For fiscal year 2023, Essentia Health reported $2.8 billion in revenue and operating income of $110,000. Expenses rose 8.4% to total $2.7 billion during the year, which ended Jun. 30. Net income jumped to $121.7 million for the year, compared to a net loss of $72 million in 2022, according to its unaudited financial statement.

The Essentia Health-Marshfield Clinic Health System and St. Luke's Duluth-Aspirus Health merger deals will be subject to Minnesota Attorney General Keith Ellison's newly granted oversight authority. Editor's Note: A previous version of this story inaccurately identified one of the mergers under review. The story has been corrected to identify the mergers under review as Essentia Health and Marshfield Clinic Health System and St. Luke’s Duluth and Aspirus Health. The Fierce Healthcare newsletter distributed Thursday, Oct. 5 also incorrectly identified one of the mergers under review. Minnesota Attorney General Keith Ellison announced Tuesday that he is reviewing two pending health system mergers under a recently passed state law that gave his office additional authority to determine whether the deals are in the public interest. The potential deals would create multibillion-dollar nonprofit entities. The first is between Essentia Health and Marshfield Clinic Health System. Their merger would create a network of 3,800 providers and 150 sites of care, including 25 hospitals. The entity would serve over 2 million rural and mid-urban Midwest residents. The second merger was announced in July and involves Minnesota-based St. Luke’s Duluth and Wisconsin-based Aspirus Health. That deal’s culmination would tally 19 hospitals, with a similar closing window of early 2024. Ellison’s announcement came with a call for public input via a community meeting being held Oct. 25 and an online submission portal. The state’s head attorney said the feedback will be incorporated into his review and could shape potential improvements to public policy or regulatory measures. "Every Minnesotan deserves high-quality healthcare that they can afford, access, and depend on, and every Minnesotan deserves the opportunity to provide input on healthcare transactions that affect them,” Ellison said in the announcement. “As I review these mergers to ensure they comply with state and federal law, I want to hear from the public, because Minnesotans’ thoughts and concerns are an essential part of our review.” Ellison’s scrutiny has already contributed to a scuttled health system deal this year. After convening public forums late last year, the attorney general’s requests for additional information triggered multiple delays for Sanford Health and Fairview Health Services’ hopeful 58-hospital merger. Concurrent concerns from Minnesota legislators and Gov. Tim Walz eventually yielded a new law that gave the attorney general more power to enjoin and unwind any healthcare transactions determined not to be in the public interest. Sanford and Fairview called off the merger in late July due to the opposition from “certain Minnesota stakeholders.” Ellison cited the “additional authority” granted to him by the state in this week’s review announcement. Statements given to the press by Essentia and St. Luke’s welcomed Ellison’s review and reaffirmed the benefits their merger would bring to patient care in their communities.