Fosston and Essentia Health preparing for arbitration in July

Apr. 27—FOSSTON, Minn. — The city of Fosston will formally enter arbitration with Essentia Health in July following the closure of Essentia Health-Fosston's labor and delivery services unit, which followed two years of temporary redirection of those services to Essentia Health St. Mary's-Detroit Lakes.

A recent poll regarding the hospital and Fosston residents' satisfaction with its services was sent to those living in the city and the surrounding area, Fosston Mayor Jim Offerdahl said. He believes the survey was an attempt to sway public opinion about him and the Fosston City Council. He also believes it to be an effort to turn people from supporting the arbitration and the city's decision to try and terminate its agreement with Essentia Health, which has been the city's plan since a

public hearing

regarding the closure of the labor and delivery services unit in January.

"That is an absolute attempt to deceive, mislead and misinform people," Offerdahl said.

Mark Thompson, president of Essentia Health's west market, confirmed the poll was sent by Essentia through a third party, with the purpose of receiving opinions about the hospital. Essentia went through a third party to "take a step back" and avoid bias in the replies, Thompson said. Of the 326 respondents, 85% of past patients said they were satisfied with Essentia Health-Fosston's services and 53% said they were very satisfied. Of respondents who worked at the hospital, 84% said they agree Essentia is a good employer.

Offerdahl said there were questions in the survey asking respondents how they feel about Fosston leadership, such as the Fosston City Council and him, which Thompson confirmed. While Thompson said the goal of the survey was to receive unbiased opinions to get information on how residents feel about the hospital and the possible future change of control, Offerdahl said the survey was an attempt to mislead people and sway public opinions. Data from the survey showed 51% of respondents are unsure about supporting the transition of the hospital to a new health system or to local control, but Offerdahl said he has spoken with multiple residents who do not want to see Essentia operating the hospital any longer.

The interaction between Fosston and Essentia regarding the hospital has been an ongoing conversation since 2022, following the temporary redirecting and now closure of the hospital's labor and delivery services unit. Next, arbitration is expected to begin in July.

The closure of the unit, Thompson said, is due to employee recruitment and volume. Many rural health care locations are struggling with recruiting, he said, and for Fosston that means struggling to recruit OB-GYNs that are knowledgeable in providing cesarean sections and other surgical services. Also, the volume of births per year in Fosston is decreasing, which means an OB-GYN may not be busy enough to stay credentialed or state board certified, he said.

"We think about quality, safe, rural health care," Thomspon said. "We have an imperative to make sure we're staffed adequately, we have the right redundancies and backup and that we can address some urgent situations, obstetrical care specifically in labor and delivery."

Though the labor and delivery services unit has closed, Essentia Health-Fosston continues to provide OB services, including prenatal and postnatal care.

When the temporary redirecting of labor and delivery services began in 2022, Offerdahl said the city set up a task force of community members that would work with Essentia to keep the city updated with correct information. After a year without the services being reinstated, the city opened a dispute with Essentia.

The hospital was previously owned by First Care Medical Services, a 501(c)(3) that operated it until Essentia took over in 2009. According to Offerdahl, a three-party affiliation agreement between Essentia, First Care and the city of Fosston stated Essentia was required to give 120 days' notice if it had to cease, transfer or change core services so the city had the chance to do arbitration, a process of letting a panel make the final decisions before an action was officially made.

In the agreement, Offerdahl said, labor and delivery services count as core services, and he contends Essentia did not give notice within the 120-day requirement. Louie St. George, public relations and external communications manager for Essentia, said Essentia disagrees with Offerdahl's interpretation of the agreement, but will see how the arbitration panel decides on the interpretation.

Thompson also said there were multiple formal meetings and presentations regarding the change, and St. George provided a link to a media release from June 2022 announcing the labor and delivery service's temporary diversion to Detroit Lakes. Essentia also took part in a public hearing in January, part of requirements made by the Minnesota Department of Health passed by the Minnesota Legislature in 2021, which needed to be done before the closure of a hospital or hospital campus, service relocation or cessation in offering certain services alongside a 120-day notice.

St. George said the department had not found Essentia in violation of the 120-day notice, as the situation regarding the labor and delivery services unit was previously a temporary relocation, not closure. At the hearing, employees of Essentia, including Thompson, explained the reasoning behind the closure of the unit and diversion of services to Detroit Lakes, while Fosston residents voiced concerns over the change.

At present, both groups are preparing for arbitration, which will begin July 8, Offerdahl said. His goal, he said, is to bring the hospital back into the city and First Care's control. The city is forming a task force to prepare for if the hospital is put back in local hands. Essentia, meanwhile, will remain committed to Fosston and the surrounding community it serves, Thompson said.

"We will do everything we can to stay connected and be in the community and be responsible no matter what the arbitration decision will be," he said.

Offerdahl is hopeful the city will be able to regain control of the hospital, he said.

"We'll see. Maybe something will happen between now and July," he said. "I'm not holding my breath, but anything's possible."