The respective boards of directors of HealthEast, a four-hospital system in St. Paul, Minn., and Fairview Health Services, a seven-hospital system in Minneapolis, approved the organizations' plans to merge, effective June 1. The merger will create one of the largest hospital networks in Minnesota.
The combined health system will be led by James Hereford, current president and CEO of FHS. Kathryn Correia, president and CEO of HealthEast, will become chief administrative officer of the merged entity, according to an emailed news release.
The merged organization will also be governed by FHS' existing board of directors, which will feature three additional members from HealthEast's board of directors.
The financial terms of the agreement were not disclosed.
The organizations initially revealed plans to merge in March.
"On June 1, patients of both Fairview and HealthEast should continue to expect the same great care and service they've always experienced in our systems," said Mr. Hereford. "Joining forces will ultimately enable us to deliver even better care with a broader range of services for our patients. We're planning a thoughtful integration process that will unfold over time."