Fairview Health, Sanford call off proposed merger citing lack of support
MINNEAPOLIS (FOX 9) - The proposed merger between Fairview Health Services and Sanford Health has been called off.
Fairview and Sanford, two healthcare giants based in Minneapolis and Sioux Falls, North Dakota, respectively, announced the proposal eight months ago with plans to merge in 2023. But, the proposal presented a web of legal and operational questions between the companies which operate over 50 medical centers with thousands of employees.
The mega-merger raised concerns about things like patient care and whether Sanford could own the University of Minnesota Medical Center. Fairview runs the teaching hospitals and clinics at the university. If the merger went through, it could have put some of the university’s key assets under the control of an out-of-state company.
State lawmakers even tried to terminate the deal by passing a bill that would prevent out-of-state ownership of a University of Minnesota facility. Minnesota Attorney General Keith Ellison also opened an investigation into whether the deal violated antitrust laws.
However, after extensive pushback, both companies stated on Thursday the merger lacked support from key stakeholders and decided not to move forward with the plan.
The president and CEO of Sanford, Bill Gassen, released the following statement:
"The significant benefits we identified for a combined system with Fairview Health Services compelled us to exhaust all potential pathways to completing our proposed merger. However, without support for this transaction from certain Minnesota stakeholders, we have determined it is in the best interest of Sanford Health to discontinue the merger process.
"This is the right decision for our patients and residents, our people and the communities we serve. 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 health care delivery and enhance access to care in both rural and urban areas.
"Throughout this process, the one thing that has remained constant is the incredible pride I have in our organization and the care our people deliver every day. We are fortunate to be in a strong position, with opportunities to invest in our people and our patients, and I am excited as ever about our path forward."
The Minnesota Nurses Association considers this a "big win," saying the consolidation was "bad for patients, bad for work, and bad for Minnesota."
"Since the merger was first announced, nurses have expressed deep concerns that a merger between these two healthcare giants would lead to the loss of healthcare access across Minnesota, but especially throughout our rural communities," said aid Mary C. Turner, RN, President of the Minnesota Nurses Association, in a statement. "Additionally, this planned merger threatened the future of healthcare in our state by putting the future of the University of Minnesota, including its medical school, into question. Minnesotans have come to expect a high standard of care and nurses are relieved that we will continue to be able to provide that care and protect our profession."