In a press release, Sanford Health, the largest rural health system in the United States, and Fairview Health Services, one of the top health care providers in Minnesota, have signed a nonbinding letter of intent to merge and form a new health system.
Together, the merged institution will bring together Sanford Health’s experience serving rural people and Fairview Health Services’ experience serving urban populations across geographical footprints that are complimentary. The merged system will be ideally positioned to deliver greater access to high-quality, equitable health care, to accelerate population health and value-based care, and to promote clinical innovation for the benefit of rural, urban, and indigenous communities throughout the Midwest.
Bill Gassen, president and chief executive officer of Sanford Health, stated, “Our organizations are joined by a desire to improve the health and well-being of our communities.” “As a combined system, we can do more to expand access to complex and highly specialized care, use innovative technology and provide a broader range of virtual services, unlock greater research capabilities, and transform the care delivery experience to ensure that every patient, no matter where they live, receives the best possible care.”
“With Sanford Health, Fairview Health Services has discovered a partner who shares our Midwestern values and dedication to affordable, accessible, and equitable care delivery,” stated James Hereford, president, and chief executive officer of Fairview Health Services. Together, we are uniquely positioned to improve clinical outcomes, develop new care delivery models, expand opportunities for employees and clinicians across our broader operational footprint, and apply our combined resources to positively impact the health of our patients and communities both now and in the future.
This integrated system will:
- Drive value via excellent treatment and improved outcomes;
- Support health equity;
- Enhance the patient experience;
- Contribute to more affordable care in the areas we serve;
- Provide opportunities for continuing employee development and clinical improvement; and
- Foster an innovative culture that enables us to recruit and retain the brightest and most talented individuals across our operating footprint.
Sanford Health and Fairview Health Services will continue to operate as nonprofit organizations, each with its own regional presence, leadership, and boards in the areas they serve. Upon completion of the deal, the parent company’s name will be changed to Sanford Health. Bill Gassen, CEO of Sanford Health, will serve as president and CEO of the combined system, while James Hereford, CEO of Fairview Health Services, will serve as co-CEO for one year following the close.
The governing boards of both health systems have approved moving forward with the appropriate measures, including due diligence and review processes, in order to consolidate Fairview Health Services and Sanford Health into a unified health system. The goal is to enter a definitive agreement, and the transaction is expected to close in 2023, subject antitrust and other required reviews and closing conditions.
Throughout the completion of this process, Sanford Health, Fairview Health Services, and their partners are committed to ensuring that the patients, residents, and communities they serve continue to receive great care from their doctors.
