Sanford, Fairview push back merger timeline: What we know so far
There have been several new developments with the proposed merger between Sanford Health and Fairview Health in the last couple of weeks. The two healthcare systems, who announced plans to merge last November, have faced opposition from lawmakers, organizations and residents.
Last week, the two released their original letter of intent, along with a cover letter that shed light on new details. Additionally, they announced they would push back their deadline to close the deal.
Here's a closer look at what we know about the Sanford-Fairview merger so far:
Earlier:Here's what we know about the potential Sanford, Fairview Health merger
What's the timeline of events?
Sept. 9, 2022: Sanford Health and Fairview Health sign a letter of intent to merge with a projected closing date of March 31.
Nov. 15: The two health systems publicly announce their intent to merge.
Nov. 16: Minnesota Attorney General Keith Ellison opens an investigation into the merger.
November: Organizations like the Minnesota Nurses Association begin to publicly oppose the merger.
January: Attorney General Ellison hosts public hearings across Minnesota throughout the month for residents to voice their opinions on the merger.
January: Ellison recommends Sanford and Fairview push back their timeline to close.
Jan. 30: Minnesota’s Legislature holds a committee hearing on the merger.
Feb. 10: Sanford and Fairview agree to push back their closure to May 31.
Feb. 13: The two health systems release the original Letter of Intent along with a joint cover letter to Minnesota lawmakers that addresses the committee’s comments and outstanding questions.
When is the merger now expected to take place?
Sanford and Fairview decided to push back the self-imposed deadline by two months. The two entities now plan to close the deal May 31.
Where will the new system be headquartered?
The new system will operate under the name Sanford Health and be headquartered in Sioux Falls. It will still maintain a regional corporate presence in the Twin Cities area.
Who will be in charge?
Sanford CEO Bill Gassen will serve as the president and CEO. Fairview CEO James Hereford will serve as Co-CEO for the first year.
There will be a combined Board of Trustees. According to the letter of intent, the initial board will consist of eight trustees from Sanford and seven trustees from Fairview, in addition to Gassen and Hereford, who will be ex officio voting members.
Regional subsidiaries will have separate delegated governing boards and management structures. Clinical care policies will continue to be made by medical staff committees at the local level.
More:Good Samaritan Society's downsizing won't affect Sioux Falls care
How much will the merger cost?
The letter gave no indication to how much the merger will cost. It does, however, include a “strategic capital investment” of $500 million from the combined system that will be used in Minnesota hospitals and facilities currently served by Fairview.
Additionally, philanthropist T. Denny Sanford intends that Sanford Health will be the primary beneficiary of his estate upon his death.
What major organizations have publicized their stance on the merger?
There has been a lot of public outcry against the merger, both from organizations and residents. At public hearings throughout January in Minnesota, while some residents spoke in favor of the merge, many were against.
In addition to individuals, the following are organizations that have publicly opposed the merger:
Minnesota Nursing Association: The group was one of the first to publicly oppose the merger, asking for a seat in the table back in November when the news was announced.
University of Minnesota: Aside from requesting that Sanford and Fairview push back their timeline, the university had asked to be involved in the dealings of the merger and is also considering buying back its facilities from Fairview.
IAM: The International Association of Machinists and Aerospace Workers is a union that represents more than 10,000 healthcare workers in the United States, including hundreds of people who work at Sanford.
More:Minnesota's med students oppose Sanford-Fairview merger, and politics play a major role
What are some of the major concerns against the merger?
That South Dakota’s laws could result restricted access for gender-affirming care and women’s healthcare, including abortion, in Minnesota clinics that are part of the new system
That it could result in the closure of more healthcare facilities, therefore resulting in less access to care in rural areas and layoffs for non-executive employees
That Sanford becoming a healthcare conglomerate could result in higher costs for patients receiving care
That a merger could impact the University of Minnesota's medical school standards
Sanford and Fairview addressed these issues in the cover letter and stated the merger would not affect access to care nor result in facility closures of increased costs.
How will the merger affect the affiliated medical schools?
The University of Minnesota’s medical school officials and students alike have voiced concern about how this merger could affect them.
But Sanford and Fairview officials have both been adamant the merger wouldn’t result in adverse effects for the University of Minnesota or the Universtiy of South Dakota's medical school. In the cover letter, the health systems note that the Sanford School of Medicine at USD, for example, is a public institution governed by the state.
The letter of intent also states the combined system will honor the current partnership between Fairview and the University of Minnesota, which is set to go through 2026.
Both health agencies also released a joint statement on the matter earlier this month. It reads:
“The affiliation agreement will continue to be governed by a local, Minnesota-based board. And, the university remains independent and will continue to make its own decision about its future.
We believe that continued partnership with the University of Minnesota will benefit our patients and care in Minnesota. We cannot speak for the University of Minnesota, but both CEOs desire an ongoing academic affiliation between the University of Minnesota Medical School, M Physicians, and the combined system, and we are committed to continuing discussions to this end.”
This article originally appeared on Sioux Falls Argus Leader: Here's what we know about the Sanford-Fairview merger so far
