27 July 2023
South Dakota-based Sanford Health and Minnesota-based Fairview Health Services are ending efforts to merge, both health systems announced Thursday.
A spokesperson for Sanford Health said that the Sanford Board of Trustees initiated the process of ending the merger.
In a statement, Sanford Health president and CEO Bill Gassen said his health system determined “it is in the best interest of Sanford Health to discontinue the merger process,” as the transaction lacks support “from certain Minnesota stakeholders.”
“The significant benefits we identified for a combined system with Fairview Health Services compelled us to exhaust all potential pathways to completing our proposed merger,” Gassen said.
In a separate statement, Fairview confirmed that it is discontinuing the merger process with Sanford.
“Our aligned missions, our shared commitment to health and healing, and our deep roots in our communities positioned us well to transform the future of health care,” said James Hereford, Fairview president and CEO. “While we wish the outcome were different, we know that the best thing for our patients, our people and the communities we serve is to continue our focus on delivering world class care, now and into the future.”
One of the main issues the merger brought up was that Fairview’s health system includes M Health Fairview University of Minnesota. The possible absorption into a combined system based outside the state had prompted concerns by Minnesota officials.
Sanford and Fairview executives have said they are willing to sell the University of Minnesota Medical Center to the state, but also have said they are prepared to honor their commitment to the university under a partnership agreement that runs through 2026.
The Minnesota Nurses Association opposed to the merger and argued it would not improve health services, citing examples of facilities Fairview closed after acquiring them.
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