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Sanford Health, North Memorial Health plan merger with $600 million hospital investment

by Gus Iversen, Editor in Chief | May 13, 2026
Business Affairs
Sanford Health and North Memorial Health have signed a definitive agreement to combine into a single nonprofit health system, expanding Sanford’s footprint in the Twin Cities and committing roughly $600 million toward hospital projects in Robbinsdale and Maple Grove, Minnesota.

The Sioux Falls, South Dakota-based Sanford said the deal is intended to strengthen long-term financial stability, expand access to care and support trauma, emergency and specialty services across urban and rural Minnesota. Financial terms of the transaction were not disclosed.

Under the agreement, Sanford plans to invest in North Memorial Health’s two hospitals, including upgrades to North Memorial Health – Robbinsdale Hospital and an expansion of Maple Grove Hospital. The systems said the Maple Grove project would double the hospital’s size, adding inpatient, surgical and emergency capacity while expanding cardiology and interventional radiology services.
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North Memorial Health CEO Trevor Sawallish said the organization had been facing mounting financial and regulatory pressures.

“We’ve been open about the financial and regulatory pressures and the rising costs that make it harder to protect access to care on our own,” Sawallish said. “Through a deliberate national search, Sanford stood out as a partner who understands our true value and shares our belief that better — not just bigger — is what matters.”

The organizations also said the combination would support continued operations at Robbinsdale Hospital, one of Minnesota’s Level 1 trauma centers and a key safety-net provider in the Minneapolis area.

Sanford and North Memorial collectively operate three Level 1 trauma centers. The systems also plan to integrate emergency medical transport operations, combining North Memorial’s air and ground EMS network with Sanford AirMed services.

Following the close of the transaction, North Memorial Health would become Sanford’s Twin Cities care delivery region. Sawallish would continue leading the region, while Sanford president and CEO Bill Gassen would remain CEO of the combined organization.

The combined system would include two hospitals, more than 22 clinics, 450 physicians and advanced practice providers, and about 6,800 employees in the Twin Cities market. The transaction is expected to close later this year pending regulatory approvals.

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