Sanford Health, the largest rural health system in the United States, and Fairview Health Services, one of Minnesota’s leading health care providers, have signed a non-binding letter of intent to combine and create a new health system.
Together, the combined system will bring together Sanford Health’s experience serving rural populations with Fairview Health Services’ experience serving urban populations in complementary geographic footprints. The combined system will be uniquely positioned to provide more people with access to high-quality, equitable health care, accelerate population health and value-based care, and drive clinical innovation to benefit rural, urban and local communities across the Midwest .
“Our organizations are united by a shared commitment to improving the health and well-being of our communities,” said Sanford Health President and CEO Bill Gassen. “As a combined system, we can do more to expand access to complex and highly specialized care, use innovative technologies and provide a wider range of virtual services, unlock greater research opportunities and transform the care delivery experience, to ensure that every patient receives the best care no matter where they live.”
“In Sanford Health, Fairview Health Services has found a partner who shares our Midwestern values and our commitment to providing affordable, accessible and equitable care,” said Fairview Health Services President and CEO James Hereford. “Our complementary capabilities mean that together we are uniquely positioned to improve clinical outcomes, develop new care delivery models, expand employee and clinician opportunities across our broader operational footprint, and apply our combined resources to positively impact the well-being of our patients and communities today and for decades to come.”
Objectives for a combined system
The combined system will:
- Increase value through quality care and improved outcomes;
- Support equity in health care;
- Improving the patient experience;
- Help support more accessible care in the communities we serve;
- Provide opportunities for continuous employee growth and clinical advancement; and
- Foster a culture of innovation that enables us to hire and retain the best and brightest across our operational footprint.
Sanford Health and Fairview Health Services will remain not-for-profit organizations, each with their own regional presence, leadership and regional boards in the markets they serve. After the transaction closes, the name of the parent company will be Sanford Health. Sanford Health CEO Bill Gassen will serve as president and CEO of the combined system, and Fairview Health Services CEO James Hereford will serve as co-CEO for a one-year period following the closing.
The governing boards of both health systems have approved taking the necessary steps, such as due diligence and review processes, to organize Fairview Health Services and Sanford Health into one integrated health system. A definitive agreement is intended to be signed and the transaction is expected to close in 2023, pending antitrust and other necessary reviews and closing conditions.
Sanford Health, Fairview Health Services and their partners are committed to ensuring that the patients, residents and communities they serve will continue to have access to exceptional care from their clinicians during the completion of this process.
About Sanford Health
Sanford Health, the largest rural health system in the United States, is dedicated to transforming the healthcare experience and providing access to world-class healthcare in America’s heartland. Headquartered in Sioux Falls, South Dakota, the organization serves more than one million patients and 220,000 health plan members across 250,000 square miles. The integrated health system includes 47 medical centers, 2,800 Sanford Health physicians and advanced practice providers, 170 clinical researchers and researchers, more than 200 Good Samaritan Society senior care locations and global clinics in 8 countries around the world.
About Fairview Health Services
Fairview Health Services is a Minneapolis-based not-for-profit health system dedicated to treating, discovering and educating for longer, healthier lives. Founded in 1906, Fairview Health Services provides exceptional care to patients and communities as one of the most comprehensive and geographically accessible systems in Minnesota. The Fairview Health Services system includes 31,000 employees in 11 hospitals, more than 80 primary and specialty care clinics, 36 retail and specialty pharmacies, rehabilitation centers, a physician network, nursing homes and long-term care facilities, and medical transport.
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Posted in Company News, News, Rural Health