Rural Minnesota hospitals band together for long-term independence

Nineteen independent Minnesota hospitals have launched Headwaters High-Value Network, a collaborative aimed at strengthening rural healthcare and helping its members maintain their independence.

Ken Westman, Headwaters board chairman and CEO of Aitkin-based Riverwood Healthcare Center, said in a June 27 news release that the members of the network "believe that helping rural hospitals to remain independent is the best way to serve the healthcare needs of our communities."

"We also believe that our independence is strengthened by our interdependence," he said. "The more we can work together, the better we can care for our communities."

Here are five things to know about the Headwaters High-Value Network:

At the center of the collaborative is a clinically integrated network featuring the 19 hospitals and more than 50 clinics that will provide coordinated care to 750,000 residents. The network will set up operational collaborations designed to control costs and spread best practices among its members.

As the collaboration deepens, the Headwaters HVN will be "a strong partner with payers on value-based insurance products that improve quality, reduce cost, and enhance patient and provider experience."

The network is in discussion with other rural hospitals in Minnesota and expects to grow.

The daily management of the network will be led by principals from Cibolo Health, which also manages the Rough Rider High-Value Network, a collaborative of 23 critical access hospitals in North Dakota.

The Headwaters HVN board of directors includes seven leaders from rural hospitals across Minnesota: 

  • Chair Ken Westman, CEO of Riverwood Healthcare Center in Aitkin
  • Vice chair Randy Ulseth, CEO of Welia Health in Mora
  • Secretary and treasurer Carl Vaagenes, CEO of Alomere Health in Alexandria
  • Joel Beiswenger, president and CEO of Astera Health in Wadena
  • Erik Bjerke, CEO of Madison (Minn.) Healthcare Services
  • Carrie Michalski, president and CEO of RiverView Health in Crookston
  • Rachelle Schultz, president and CEO of Winona (Minn.) Health Services 

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