Essentia Health pitching $1 billion proposal to add 2,500 ICU beds nationwide

DULUTH – Essentia Health is lobbying Congress for a $1 billion plan to add ICU-capable beds around the country — including at Essentia's new hospital under construction in downtown Duluth.

The ICU Readiness Fund proposal would split federal money across 10 regions where hospitals are under construction. Each $100 million investment could mean up to 250 beds.

The Duluth-based health system is taking the lead on the proposal and has reached out to other hospitals to create a national program as opposed to one solely benefiting Essentia and the region.

Current plans for Essentia's new hospital call for 64 ICU beds; $100 million in taxpayer support would add 224 more.

"This is about cost efficiency," said Dr. Jon Pryor, president of Essentia's east division. "It's a relatively inexpensive way to add ICU-capable beds" compared to upgrading as many existing rooms.

Pryor said the timing is right to plan for the next pandemic while there is still a sense of urgency among the public and policymakers. And rather than bring more ICU beds to larger metro areas, he said, the proposal can boost underserved rural populations and provide a backstop for urban areas.

"We've got this unique opportunity that is time-bound," Pryor said. "It's a timely and important issue to get ahead of."

U.S. Rep. Pete Stauber, R-Hermantown, has signaled support for the proposal. Whether it can be included in an upcoming coronavirus relief bill or will be pushed past the election remains to be seen.

"This is a big proposal that may sound theoretical but it is borne out of the experience of the pandemic," said Andrew Askew, Essentia's vice president of public policy. "Why should we set up beds in a [hockey arena] when we have a new hospital being put in?"

For Essentia, next August is when the window closes on the ability to install the additional ICU capacity at a lower cost than converting already-built rooms.

"We're not going to be able to do this without funding," Pryor said.

State money is already pouring into Essentia's $800 million Duluth campus project, dubbed Vision Northland, to the tune of nearly $100 million. Askew said federal funding will likely be the only way to put the idea into action.

Essentia has reached out to a number of health systems in the middle of hospital construction and has seen some interest — though the current pandemic is taking precedence for many hospital administrators.

"It is important we act during this pandemic," Pryor said. "Unfortunately, people may forget once it's over."