Sioux Falls, S.D.-based Sanford Health’s planned combination with Robbinsdale, Minn.-based North Memorial Health will move forward under a 10-year oversight agreement with the Minnesota Attorney General’s Office.
The agreement includes commitments to invest $600 million in North Memorial’s hospitals, preserve core services at Robbinsdale Hospital and maintain a range of workforce, access and community-benefit protections for a decade, according to an Aug. 28 news release from the attorney general’s office.
Under the memorandum of understanding, Sanford and North Memorial agreed to invest $500 million in Maple Grove (Minn.) Hospital and $100 million in Robbinsdale Hospital. The systems also committed to maintaining Robbinsdale Hospital’s level 1 trauma center and related core services for 10 years, including its emergency department, cardiac and cath lab services, labor and delivery, ICU, stroke care, acute rehabilitation and mental health services.
The transaction will create what the attorney general’s office described as the largest integrated urban-rural health system in Minnesota. Sanford already operates a broad network across western Minnesota, while North Memorial includes two hospitals and more than 20 clinics in the Minneapolis-St. Paul market.
The oversight pact also requires the combined organization to honor existing collective-bargaining agreements, retain employees in good standing who meet Sanford’s hiring criteria and offer health benefits comparable to those currently available. The systems also agreed not to “materially reduce” existing service lines at their Minnesota locations.
Sanford and North Memorial will meet quarterly with the attorney general to discuss integration, operations and compliance with the agreement. They will also submit annual reports for 10 years, and the attorney general will meet annually with Sanford’s board of trustees.
Minnesota Attorney General Keith Ellison said the agreement was designed to ensure the transaction serves the public interest while protecting access to care.
“While healthcare system mergers can all too often result in higher costs, fewer jobs, and less care, today’s agreement shows that Minnesota’s healthcare entity transactions law is a powerful tool for ensuring that major healthcare transactions in Minnesota serve Minnesotans’ interest,” Mr. Ellison said.
Sanford President and CEO Bill Gassen said the commitments reflect community priorities and the organizations’ shared vision for the deal.
“As one nonprofit health system, we will preserve essential care at Robbinsdale Hospital, expand access to specialty care, invest in our people, create a more resilient emergency and trauma network and strengthen care across rural and urban Minnesota,” Mr. Gassen said.
North Memorial President and CEO Trevor Sawallish said the agreement gives the system “a clear path forward” while protecting existing services and supporting future investments.
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