Minnesota AG announces 10-year oversight agreement in North Memorial Health, Sanford Health merger

A major merger between Minnesota-based North Memorial Health and South Dakota-based Sanford Health was announced Friday morning, and is set to close in a matter of days.

Soon after that announcement, Minnesota Attorney General Keith Ellison announced his office has struck a 10-year oversight agreement with the health systems.

"Minnesota is known the world over for first-class healthcare. We take pride in it, and we work hard to make sure Minnesotans can access and afford the care that they need," Ellison said in a Friday morning news conference. "Access to high-quality healthcare is an essential part of being able to afford your life and live with dignity, safety and respect."

Ellison says the deal includes a $600 million investment to ensure a "commitment to maintain core services" at North Memorial Health hospital in Robbinsdale, as well as at its Maple Grove hospitals.

Stanford has also agreed to a $15 million investment in "supporting small and independant rural healthcare providers" in Minnesota.

"The agreement is equally about Greater Minnesota, where Sanford already operates hospitals, clinics, and other services across the western third of our state," Ellison said.

Other pledges from Sanford noted in the agreement include:

• Protection of mental health, reproductive and gender-affirming care at the Robbinsdale hospital.
• Protection of North Memorial employees' jobs, benefits and union contracts.
• Maintaining an office in Minnesota, along with recruiting from state institutions.
• Maintaining a commitment to charity care, community benefit and financial assistance programs.
• Continuing North Memorial's participation in Medicare and Medicaid.

"The merger of Sanford and North Memorial Health will create the largest and first ever integrated urban rural health system in Minnesota, one rooted in Minnesota values of cooperation, mutual aid and inclusion and collective problem solving for the greater good," Ellison said.

"We have agreed to respect all of the collective bargaining agreements that are in place. And there will be no job eliminations associated with this integration," said North Memorial CEO Trevor Sawallish. 

Health care leaders are calling it a win for North Memorial employees and patients. When the agreement was first announced in May, Twin Cities residents and faith leaders spoke up to voice concerns that hospital prices would increase and access to some health care would be lost. Especially in communities of need.

"And because North Memorial and Sanford also listened, and continue to come to the table, the outcome changed. That deserves to be celebrated," said Minister JaNae' Bates Imari. 

Ellison's office will provide oversight for the next decade, but Sanford Health president and CEO Bill Gassen is hopeful this partnership will last for decades to come. 

"Yes, it's a 10-year oversight agreement. But if we are only meeting those commitments for 10 years, we have failed," said Gassen. "If you are in Minnesota, you deserve access to the same world class care." 

The merger will become official on Sept. 1.