Minneapolis-based Fairview Health Services is embroiled in one of the biggest health system merger discussions in the country right now, and Minnesota Attorney General Lori Swanson is ensuring that any action taken will not negatively impact patients in the state, according to a Minnesota Public Radio report.
In late March, Fairview and Fargo, N.D.-based Sanford Health announced they had entered exploratory merger discussions, which could ultimately create a $6 billion healthcare organization and one of the largest non-profit health systems in the upper Midwest. Since then, the University of Minnesota — which currently controls Fairview's flagship hospital, the University of Minnesota Medical Center, Fairview — has indicated it is also interested in buying the health system.
The past weekend, Ms. Swanson held an initial hearing to discuss the ramifications of a potential takeover of Fairview. Ms. Swanson and other state officials have voiced concerns over Sanford's proposed merger deal, saying Fairview and Sanford should have involved public officials before the initial merger discussions.
Sanford COO Becky Nelson attended the hearing and said a potential Fairview-Sanford organization could save between $40 million and $60 million every year due to supply chain savings and free flow of patient information, according to the report. However, Ms. Nelson said Minnesota's probes and interference have not allowed the two parties to have "preliminary, thoughtful and inclusive discussions with each other" and other stakeholders.
University of Minnesota officials also appeared at the hearing. The college said as the merger process continues, it will impose a moratorium on anything related to charitable gifts that could create a conflict of interest, according to the report.
Another hearing with the Minnesota AG and suitors is expected in two weeks.
In late March, Fairview and Fargo, N.D.-based Sanford Health announced they had entered exploratory merger discussions, which could ultimately create a $6 billion healthcare organization and one of the largest non-profit health systems in the upper Midwest. Since then, the University of Minnesota — which currently controls Fairview's flagship hospital, the University of Minnesota Medical Center, Fairview — has indicated it is also interested in buying the health system.
The past weekend, Ms. Swanson held an initial hearing to discuss the ramifications of a potential takeover of Fairview. Ms. Swanson and other state officials have voiced concerns over Sanford's proposed merger deal, saying Fairview and Sanford should have involved public officials before the initial merger discussions.
Sanford COO Becky Nelson attended the hearing and said a potential Fairview-Sanford organization could save between $40 million and $60 million every year due to supply chain savings and free flow of patient information, according to the report. However, Ms. Nelson said Minnesota's probes and interference have not allowed the two parties to have "preliminary, thoughtful and inclusive discussions with each other" and other stakeholders.
University of Minnesota officials also appeared at the hearing. The college said as the merger process continues, it will impose a moratorium on anything related to charitable gifts that could create a conflict of interest, according to the report.
Another hearing with the Minnesota AG and suitors is expected in two weeks.
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