Polk County District Court has ruled in favor of the City of Fosston in its dispute with Essentia Health over the affiliation agreement, and the dispute will proceed through the arbitration process.
The City appreciates the Court’s careful review of the matter and welcomes the clarity this order provides. From the beginning, the City has maintained that it has the right to terminate the affiliation agreement, and that the current dispute over that termination should be resolved through the arbitration process established in the agreement. With this decision, the process can now move forward in the appropriate forum.
The City understands that Essentia Health disagrees with the City’s position. However, the Court’s order confirms that the dispute will proceed to arbitration, where the parties will have the opportunity to present their positions through the proper legal process.
“This ruling allows the City to take the next step in a process we have pursued on behalf of the Fosston community,” said Mayor Jim Offerdahl. “Our goal has always been clear: to protect and strengthen access to high-quality healthcare in Fosston for the people who live, work, and seek care here.”
The City recognizes that Essentia Health may disagree with the City’s position and may characterize the dispute differently. However, today’s order confirms that the City’s position deserves to be heard through the arbitration process. The City has consistently maintained that it has both the right and just cause to terminate the affiliation agreement, and that the proper venue for resolving that dispute is arbitration.
The City remains committed to being responsible with public resources and transparent with residents as the process moves forward. While legal proceedings take time, the City believes this step is necessary to clarify the future of the affiliation agreement and to continue advocating for the long-term healthcare needs of Fosston and the surrounding area.
The next phase will involve selecting arbitrators and establishing a schedule for the arbitration proceedings. Exact dates are unknown and will depend on the availability of the parties, attorneys, and arbitrators. The next step in the process will be the selection of arbitrators, followed by preparation for the arbitration hearing. The City is hopeful that the hearing and a resolution to this matter will be reached in 2027.
The City will continue to work closely with its legal counsel throughout this process and will keep the public informed as major milestones occur.
Healthcare in Fosston has changed significantly in recent years, and the City understands the community’s concerns about access to care, continuity of care, and the availability of services close to home. The City is also encouraged by the continued commitment of local healthcare professionals and others working to meet the needs of area residents. This commitment has been affirmed by local, private contributions of over three hundred thousand private dollars supporting community efforts to restore local healthcare.
The Polk County District Court further outlined the City’s “consistent, material support for First Care…” and the fact that the City is a party to the agreement with rights. To view this public order in its entirety, please visit: https://publicaccess.courts.state.mn.us/DocumentSearch
Enter case number: 60-CV-25-1782
The City remains committed to a positive, constructive path forward and will continue working with community leaders, healthcare professionals, and residents to support healthcare access in Fosston.
