Sanford-Fairview merger delayed until May, $500M investments planned for Minnesota facilities

Sioux Falls, S.D.-based Sanford Health plans to invest millions of dollars into Minneapolis-based Fairview Health Services facilities when the systems merge, according to a report from SiouxFalls.Business.

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If the merger goes through, the system would have more than 50 hospitals and 78,000 employees. Sanford and Fairview had hoped to complete the merger in March, but announced plans in mid February to extend the completion date to May 31 amid the Minnesota Attorney General’s review, according to CBS Minnesota.

In a Feb. 13 letter sent to Minnesota legislators, Bill Gassen, CEO of Sanford, and James Hereford, CEO of Fairview, outlined details about the proposed merger including additional funding for the Minnesota-based facilities. The combined system would invest $500 million into Fairview’s Minnesota-based facilities, which was outlined in the letter of intent signed in September.

The letter also mentioned “Cornerstone Commitments” from Sanford Health and Denny Sanford, who has named Sanford Health as the primary beneficiary of his estate.

The letter also noted the combined health system would support local leadership and governance, according to the report, and local medical staff committees would make clinical care decisions and policies. Both systems would remain nonprofit entities.

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