SIOUX FALLS (KDLM) – Sanford Health, the largest rural health system in the United States which operates several clinics throughout the Lakes Area, and Fairview Health Services, one of the leading providers of health care in Minnesota, have signed a non-binding letter of intent to combine and create a new health system.
Together, the combined system will bring together Sanford Health’s experience serving rural populations with Fairview Health Services’ experience in serving urban populations across complementary geographic footprints.
“Our organizations are united by a shared commitment to advance the health and well-being 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.”
Sanford Health and Fairview Health Services plan to remain nonprofit entities, each with their own regional presence, leadership and regional boards in the markets they serve after the completion of the proposed merger. Upon close of the transaction, the name of the parent company will be Sanford Health. Sanford Health CEO Bill Gassen will serve as president and CEO of the combined system, and Fairview Health Services 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 proceeding with necessary steps, such as due diligence and review processes, with the goal of organizing Fairview Health Services and Sanford Health under a single integrated health system. The intention is for a definitive agreement to be signed and the closing of the transaction is anticipated in 2023, pending antitrust and other necessary reviews and closing conditions.