Sanford Health to Merge With Fairview Health Services

Sanford 111522

SIOUX FALLS, S.D. (KFGO) — Sanford Health and Twin Cities-headquartered Fairview Health Services have signed a non-binding letter of intent to combine and create a new health system.

A joint statement says the combined system would bring together Sanford’s rural population hospitals and clinics with Fairview’s experience in serving urban populations and would be uniquely positioned to provide more people access to high-quality, equitable health care.

“Our organizations are united by a shared commitment to advance the health and wellbeing of our communities,” said Sanford Health President and CEO Bill Gassen. “As a combined system, we can do more to expand access to complex and highly specialized care, utilize innovative technology and provide a broader range of virtual services, unlock greater research capabilities and transform the care delivery experience to ensure every patient receives the best care no matter where they live.”

According to the letter of intent, Sanford and Fairview will remain nonprofit entities, each with their own regional presence, leadership and regional boards in the markets they serve. Upon close of the transaction, the name of the parent company will be Sanford Health. Sanford CEO Bill Gassen will serve as President and CEO of the combined system, and Fairview CEO James Hereford will serve as Co-CEO for a period of one year post-closing.

The governing boards of both health systems have approved the merger. The intention is for a definitive agreement to be signed and the closing of the transaction is anticipated in 2023.

The proposal would require antitrust and other regulatory reviews.

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