Sanford Health and Fairview Health Services have signed a letter of intent to combine into a single health system.
Midwest Sanford Health and Fairview Health Services nonprofit health systems was announced today that they have signed a non-binding letter of intent to combine and create a new health system.
The merger will bring together the Sioux Falls, South Dakota-based health system and the Minneapolis, Minnesota-based systems to combine their experience serving rural and urban populations and hope to provide accessible and equitable health care, accelerate health population and value-based care and advance clinical innovation for rural, urban and Indigenous communities throughout the Midwest.
The organizations will sign a definitive agreement and, after antitrust review, hope to close the deal in 2023. After the deal closes, the parent company's name will be Sanford Health. The health systems will remain not-for-profit organizations, each with their own regional presence, and will have their own leadership and regional boards in the markets they serve.
Bill Gassen, who currently serves as president and CEO of Sanford Health, will serve as president and CEO of the combined system, while Fairview Health Services CEO James Hereford will serve as co-CEO for one year after final transaction.
Sanford Health, which is the largest rural health system in the nation, serves more than one million patients and 220,000 health plan members and has 47 medical centers in South Dakota, North Dakota and Minnesota. Fairview Health Services, one of the most geographically accessible health systems in Minnesota, has 11 hospitals, more than 80 primary and specialty care clinics and many other facilities.
Together, the combined system will have 56 hospitals, 600 care sites, an established health plan, a specialty pharmacy and pharmacy benefits manager and growing Medicare Advantage options.
“Our organizations are united by a shared commitment to advancing the health and well-being of our communities,” Gaschen said in a statement. “As a combined system, we can do more to expand access to complex and highly specialized care, use innovative technology and provide a wider range of virtual services, unlock greater research potential and transform the care delivery experience to ensure that every patient receives the best care no matter where they live.”
“With Sanford Health, Fairview Health Services has found a partner who shares Midwestern values and our commitment to providing affordable, accessible and equitable care,” Hereford said in a statement. “Our complementary capabilities mean that together, we are uniquely positioned to improve clinical outcomes, develop new models of care delivery, expand opportunities for employees and clinicians across our broader operational footprint, and use our combined resources to to positively impact the well-being of our patients and communities today and for decades to come.”
What are the benefits of this deal?
According to FAQ page about the agreement, the merger will have many benefits for both organizations, their patients and their employees.
- The combined system will create more patient access to care, including specialty medical care such as advanced diagnostics and treatments, complex surgeries and subspecialties nationwide, and increase access to innovative behavioral health services
- Patients will have increased access to virtual care capabilities, including the integration of new technology and cutting-edge innovation
- Patients will also have greater access to accelerated population health and value-based care
- Clinicians will have more access to resources, collaborative opportunities, and a stronger peer network
- Employees will have new opportunities for professional growth and development, training and geographic mobility
Melanie Blackman is the strategy, marketing and human resources editor at HealthLeaders, an HCPro brand.
