Minneapolis-based Fairview Health Services and Fargo, N.D.-based Sanford Health have entered exploratory merger discussions, potentially creating one of the largest non-profit health systems in the upper Midwest.
Kelby Krabbenhoft, president and CEO of Sanford Health, stressed in a statement that Sanford and Fairview executives have only agreed to "an informal series of discussions for the purpose of learning more about each organization." Few details were given on what the merger would entail, but Mr. Krabbenhoft added now was an opportune time to have merger discussions as Fairview undergoes a leadership transition.
Minnesota Attorney General Lori Swanson said the state will hold several public hearings on any potential Sanford-Fairview merger. The AG's office regulates all charitable institutions, including Fairview, and Ms. Swanson said in a release that "there should be significant public dialogue about any potential transfer of control of this century-old Minnesota charitable institution to Sanford Health."
Ms. Swanson criticized the initial merger discussions between the two organizations, saying: "I am troubled by the notion that a small group of people at Fairview and Sanford would conduct private discussions without the benefit of the public's input regarding a matter of such sweeping consequences for Minnesota when it comes to control of the university health system, the quality of healthcare for our patients and our state's economy and international prestige."
Public hearings will be held April 7, but Sanford and Fairview executives did not indicate a timeline for further discussions.
Sanford owns 35 acute-care hospitals and is the largest employer in North and South Dakota with more than 26,000 employees. Fairview oversees nine hospitals, including the University of Minnesota Medical Center, and has roughly 22,000 employees. Both organizations have roughly $3 billion in annual net revenue.
Kelby Krabbenhoft, president and CEO of Sanford Health, stressed in a statement that Sanford and Fairview executives have only agreed to "an informal series of discussions for the purpose of learning more about each organization." Few details were given on what the merger would entail, but Mr. Krabbenhoft added now was an opportune time to have merger discussions as Fairview undergoes a leadership transition.Minnesota Attorney General Lori Swanson said the state will hold several public hearings on any potential Sanford-Fairview merger. The AG's office regulates all charitable institutions, including Fairview, and Ms. Swanson said in a release that "there should be significant public dialogue about any potential transfer of control of this century-old Minnesota charitable institution to Sanford Health."
Ms. Swanson criticized the initial merger discussions between the two organizations, saying: "I am troubled by the notion that a small group of people at Fairview and Sanford would conduct private discussions without the benefit of the public's input regarding a matter of such sweeping consequences for Minnesota when it comes to control of the university health system, the quality of healthcare for our patients and our state's economy and international prestige."Public hearings will be held April 7, but Sanford and Fairview executives did not indicate a timeline for further discussions.
Sanford owns 35 acute-care hospitals and is the largest employer in North and South Dakota with more than 26,000 employees. Fairview oversees nine hospitals, including the University of Minnesota Medical Center, and has roughly 22,000 employees. Both organizations have roughly $3 billion in annual net revenue.
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