July 27, 2023

Sanford Health announced today it is discontinuing the merger process with Fairview Health Services.

“The significant benefits we identified for a combined system with Fairview Health Services compelled us to exhaust all potential pathways to completing our proposed merger,” Bill Gassen, president and CEO of Sanford Health, said in a statement.

“However, without support for this transaction from certain Minnesota stakeholders, we have determined it is in the best interest of Sanford Health to discontinue the merger process.”

Gassen called it the right decision for patients, residents and the communities Sanford serves.

“We remain committed to providing world-class care to patients across our footprint,” Gassen said. “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.”

Sanford and Fairview first confirmed a letter of intent to merge in November 2022. The process has included multiple hearing by the Minnesota attorney general’s office and potential changes through the Minnesota Legislature that could have affected the process.

The merger would have created a system with more than $13.5 billion in annual revenue, ranking it among the nation’s largest nonprofit health systems. It would have been based in Sioux Falls with Gassen as CEO.

“Throughout this process, the one thing that has remained constant is the incredible pride I have in our organization and the care our people deliver every day,” Gassen said. “We are fortunate to be in a strong position, with opportunities to invest in our people and our patients, and I am excited as ever about our path forward.”

This marks the second attempt by Sanford to merge with Fairview that didn’t materialize.