Sioux Falls, S.D.-based Sanford Health and Minneapolis-based Fairview Health Services have hit the brakes on their merger after multiple delays.
The merger, which would have created a 50-hospital health system with around 78,000 employees, has faced challenges since it was announced in November 2022. The two systems hoped to finalize the merger in March, but the transaction was extended while the Minnesota Attorney General reviewed the plan. Sanford aimed to invest $500 million in Fairview, which owns the University of Minnesota Medical Center in Minneapolis.
The university, state government, nurses unions and taxpayers have opposed the merger, wanting assurance the move would keep the local community's best interest in mind.
Bill Gassen, president and CEO of Sanford, said in a statement provided to Becker's that his team exhausted all potential pathways to completing the merger before calling it quits July 27 due to lack of support from "certain Minnesota stakeholders."
"This is the right decision for our patients and residents, our people and the communities we serve," he said. "We remain committed to providing world-class care to patients across our footprint. We are extremely grateful for the support we have received from many Minnesotans who share our vision to invest in healthcare delivery and enhance access to care in both rural and urban areas."
James Hereford, Fairview's CEO, also had hoped the merger would go through.
"While we wish the outcome were different, we know that the best thing for our patients, our people and the communities we serve is to continue our focus on delivering world class care, now and in the future," he said in a statement, as reported by the StarTribune.