DULUTH — At the recommendation of the state’s appointed mediator, Essentia Health has withdrawn from the strategic facilitation process to assess the formation of a nonprofit “All-Minnesota Health System Solution” alliance with the University of Minnesota and Fairview Health Services.

The initial proposal on the formation of a new nonprofit entity was made by Essentia and the university in January. The goal was to align resources across systems for education, training and delivery of clinical care with up to $1 billion invested annually over five years.

Fairview Health Services was also invited to join the integrated health framework plan, but declined the merger in February, citing a desire to operate its hospitals and clinics independently.

In March, the Minnesota Attorney General’

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