by John R. Fischer
, Senior Reporter | October 29, 2020
Intermountain Healthcare is slated to merge with Sanford Health Photo courtesy: Intermountain Medical Center
Intermountain Healthcare and Sanford Health are merging as part of a strategic partnership to improve and make healthcare more affordable in their communities.
The two signed a letter of intent to combine into an organization made up of more than 89,000 staff members working in 70 hospitals, many in rural communities.
“This merger enables our organizations to move more quickly to further implement value-based strategies and realize economies of scale,” said Dr. Marc Harrison, president and CEO of Intermountain Healthcare, in a statement. “Through coordinated care, increased use of telehealth and digital health services, we will make healthcare more affordable for our communities.”
The two together will operate 435 clinics across seven states, provide senior care and services in 366 locations in 24 states, and insure 1.1 million people. The headquarters for the new organization will be in Salt Lake City, Utah, with corporate offices in Sioux Falls, South Dakota.
Both organizations’ boards approved moving forward with the due diligence process for the merger, with the existing board of trustees from each agreeing to form a combined board for the new organization. This includes a new executive committee with equal representation of members from the Intermountain and Sanford Health boards. Gail Miller, current chair of the Intermountain Board, will service as board chair for the new organization, while Harrison will be its president and CEO. Sanford Health president and CEO Kelby Krabbenhoft will serve as president emeritus.
“By coming together with Intermountain Healthcare, we will improve the health and well-being of the communities we serve and strengthen our impact in health care delivery and value,” said Krabbenhoft in a statement.
Staffed with more than 41,000 caregivers, Intermountain Healthcare serves communities in Utah, Idaho and Nevada with its 225 clinics, a medical group and 24 hospitals — one of which is virtual — as well as homecare, telehealth and health insurance plans. Sanford Health consists of 48,000 employees, 46 hospitals, 1,500 providers and 366 Good Samaritan Society senior care and living centers. It offers expertise in genomic medicine, global clinics, research and affordable insurance.
Both Intermountain Healthcare and Sanford Health will continue to operate under their current names for the foreseeable future.
The merger is expected to close in 2021 pending federal and state approvals. Back to HCB News