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Fairview Health offers to sell teaching hospital to proceed with $14 billion Sanford merger

by John R. Fischer, Senior Reporter | March 10, 2023
Business Affairs

The merger
Announced in November, Fairview and Sanford say their merger is necessary in a post-COVID world and would help Fairview, which saw declining revenue in 2021 and 2022. It also would not adversely affect each others’ care, since they operate in different geographic areas.

Sanford has 47 medical centers in the Dakotas and rural western Minnesota. Fairview operates 10 inpatient hospitals, 80 clinics, and 36 pharmacies. Together, they would employ 78,000 at more than 50 hospitals, making it one of the largest in the Upper Midwest.
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A previous attempt to merge in 2013 was unsuccessful.

Political leaders have opposed the merger for the same reason as the hospital, and locals and several unions say such deals often lead to higher costs for patients without evidence of increasing quality of services.

At a recent hearing, Minnesota Attorney General Keith Ellison said he is awaiting requested documents to determine if the deal complies with charitable and antitrust laws.

Ellison asked both health systems in January to push back their planned March 31 merger date, saying the deal was moving too fast and that the interests of the university were not being considered. The two delayed the date to May 31, though this is still considered by some to be rushed, according to the Star Tribune.

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