Fairview, Sanford Health cancel planned merger

MINNEAPOLIS -- A controversial hospital merger involving one of the largest healthcare providers in the Upper Midwest will not be happening.

Fairview Health Services announced Thursday that it will not continue the merger process with South Dakota-based Sanford Health.

The merger, which was set to wrap up in March, had been delayed multiple times after Minnesota Attorney General Keith Ellison and the University of Minnesota, a partner of Fairview, asked for more time to review its potential magnitude.

Fairview President and CEO James Hereford says they determined it in their best interest to discontinue the merger process due to a lack of support from "certain stakeholders."

 "While this may not have been the outcome we desired, we remain committed to our people and to continue advancing the important work we do every day in caring for those in need," Hereford said.

A spokesperson for Sanford Health told WCCO that it initiated the decision to discontinue the merger process.

Bill Gassen, President and CEO of Sanford Health released a statement on the canceled merger, saying in part, "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." 

The two healthcare providers had crafted a similar deal 10 years ago, but that plan was ultimately blocked by legislators.

Union head of the Minnesota Nurses Association, Mary Turner, issued the following statement:

"Today, nurses are relieved at the news that the planned merger between Sanford Health and M Health Fairview will not move forward. 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. 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."

Additionally, the president of SEIU Healthcare Minnesota & Iowa, Jamie Gulley, said the decision was "a big win for Minnesotans who want our state to be a leader in providing world-class healthcare for families in our state. By standing up in opposition together as patients, healthcare workers and community supporters, we were able to stop this corporate consolidation that was bad for patients, bad for workers, and bad for Minnesota."