Sanford Health, North Memorial Health deal to move forward under oversight agreement with Minnesota AG
The deal, expected to close later this year, is another attempt from the major rural nonprofit system to enter the Minneapolis market. To do so, it plans a $600 million investment into the two-hospital North Memorial Health, which will help stabilize one financially strained safety-net facility and double the size of the other.
Sanford Health, a Sioux Falls, South Dakota-based healthcare system, has announced its acquisition of North Memorial Health, a healthcare network based in the Twin Cities of Minnesota. This partnership forms a first-of-its-kind, fully integrated health system in the state. According to Bill Gassen, Sanford Health's President and CEO, this partnership will strengthen and modernize Robbinsdale Hospital while building a more connected healthcare system that serves patients across rural and urban Minnesota.
North Memorial Health CEO Trevor Sawallish emphasized that the partnership marks the beginning of the system's next chapter, with a focus on turning commitments into action. The partnership includes a 10-year oversight agreement with the Minnesota Attorney General's Office. Under this agreement, Sanford Health has committed $500 million to North Memorial Health's planned expansion of Maple Grove Hospital and $100 million to Robbinsdale Hospital.
Both systems have agreed to honor existing collective-bargaining agreements, retain good standing employees, maintain charity care and Medicare/Medicaid participation, and maintain existing levels of air and ground emergency transportation service.
The combined system will also invest $15 million in an initiative to support small and independent providers in the state, enhance Level 1 trauma care, and maintain a corporate presence in Minnesota. The systems committed to creating the largest integrated urban-rural health system in Minnesota. This merger is expected to create a larger health system in Minnesota, as stated in an August 28 press release.
The oversight agreement, resulting from a review process beginning on May 1, included all materials required by law, public meeting comments, requests from labor unions and other stakeholders. Minnesota Attorney General Keith Ellison praised the commitment to protecting Minnesotans through significant investments in facilities and people, maintaining key services, and holding the systems accountable in an oversight agreement for 10 years.
Ellison noted that the agreement addresses the distress affecting hospitals and clinics that serve rural Minnesota during a period of federal healthcare cuts.
Sanford Health and North Memorial Health both appreciated the thoughtful engagement and thorough review of the partnership by the Minnesota Attorney General's Office. The CEO of North Memorial Health, Trevor Sawallish, acknowledged listening closely to patients, clinicians, and the communities throughout the process. He emphasized the focus on protecting the care people depend on, supporting those who provide care, and making investments to keep healthcare strong in Minnesota.
Written by urgent.news from Fierce Healthcare's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Sanford-North Memorial deal closes after systems ink oversight agreement healthcaredive.com
