Fairview Health Services, Sanford Health delay merger two months

MINNEAPOLIS -- A controversial hospital merger originally set to wrap up by the end of March has been extended two months as concerns loom.

Fairview Health Services, based in Minneapolis, and Sanford Health, based in Sioux Falls, South Dakota, announced intentions for a merger in November. The merger would create one of the largest healthcare providers in the Upper Midwest.

Fairview and Sanford had crafted a similar deal 10 years ago, which was ultimately blocked by legislators.

Attorney General Ellison could block the merger the same way it was blocked in 2013, but he said previously he is not ready to do that.

Fairview and Sanford announced Friday they are voluntarily extending the competition of the merger to the end of May.

Fairview and Sanford released the following statement: 

We have voluntarily extended our target planning date for completion of the merger to May 31, 2023. Consistent with our statements at the Attorney General's community meetings and at the legislature, we continue to work cooperatively with the Attorney General to ensure they have the information necessary for their review.  In the meantime, we continue to do the important planning work within our organizations to be ready to best serve our patients and people on day one following close.

The University of Minnesota, a partner of Fairview, joined Minnesota Attorney General Keith Ellison in calling for a delay in the merger last month.

The University also recently announced its intent to gain full ownership of existing healthcare facilities on campus that are currently owned by Fairview.

RELATED: Lawmakers hear testimony on possible Sanford-Fairview Health merger

The Minnesota Attorney General's Office released a statement in regard to the delay, saying the providers still have yet to comply with repeated requests for information:

Since Attorney General Ellison's appearance at the legislative hearing last week, the parties have agreed to extend their self-imposed March 31 deadline to complete the merger to May 31. The parties, however, have not yet fully complied with our repeated requests for information. Additional time is not enough on its own to ensure that Minnesotans' interests are protected: the parties need to provide full responses to the Attorney General's Office's requests with sufficient time for review and analysis. We are considering all options available to us to secure compliance. Attorney General Ellison is also aware of efforts legislators are exploring and has been in conversation with interested legislators.

The merged system would be based in Sioux Falls and include 78,000 employees and more than 50 hospitals.