The government's plan involved a drastic re-organization of the way health care is administered at a local level - with control being transferred from today's 190 local authorities to 18 newly established counties - as well as a greater role for the private sector.
"Prime Minister Sipila will request his resignation because the health care reform can not be accomplished during this government term", Antti Kaikkonen wrote on Twitter.
Finnish Prime Minister Juha Sipila officially Friday offered his government's resignation to the country's president after it failed to put through a social and health care reform package, saying he was "hugely disappointed", the president's office announced.
Sipila, who came to power in May 2015, will continue to serve as prime minister until a new government has been appointed, a government spokesperson said.
But the coalition partners were unable to agree on issues such as how much the system should be opened up to give patients freedom of choice, among others.
"Big reforms are hard, also in Finland".
His resignation is coming five weeks ahead of legislative elections scheduled for April 14.
"My government works on a "results or resign" principle". "I take my responsibility".
The head of the opposition Social Democrats, Antti Rinne, told reporters outside parliament the government had turned itself into "a political sitting duck".
During a press briefing shortly after tendering in the resignation request, Sipila said he made the decision after consultations with Parliament proved there was no chance of pushing the prioritised reforms through during the current tenure. The government's resignation would not change the timetable for next month's elections, the justice ministry said.
A programme of austerity cuts and tighter benefits rules during his administration has been unpopular in a country where the welfare state is a cherished national asset.