Robbinsdale Hospital near Minneapolis. (Photo by North Memorial Health) (Supplied)
(FOX 9) - North Memorial Health and Sanford Health have signed an agreement to combine their nonprofit health systems.
North Memorial, Sanford Health to combine
What we know:
Sanford Health announced the agreement to combine Friday morning, with the goal of expanding health throughout the region and "ensuring long-term financial sustainability."
The combined organization is set to invest $600 million in the North Memorial Health Robbinsdale and Maple Grove Hospitals.
Officials say the combination of the two systems will modernize and sustain the Level 1 trauma center at North Memorial Health - Robbinsdale Hospital, and double the size of Maple Grove Hospital.
Additionally, health officials say the merge will expand virtual health care and access to mental health services. The two health systems will also be combining their EMS systems to span across Minnesota.
What's next:
When the two health systems combine, they will remain a nonprofit.
Two North Memorial Health board members will move to serve on the Sanford Health Board of Trustees, Charlie Weaver and Reuben Moore.
The CEO of North Memorial Health, Trevor Sawallish, will continue to lead the Twin Cities region of Sanford Health. The Sanford Health CEO, Bill Gassen, will continue to serve as president and CEO of the combined health organization.
What they're saying:
"Today marks an important step forward as we build on and expand the care we provide across Minnesota — creating more choice for patients and connecting them to a broader network of providers, services and specialized expertise," said Bill Gassen, president and chief executive officer of Sanford Health. "By coming together as one nonprofit healthcare organization, with shared Midwest values and a deep commitment to the communities we serve, we will deliver more coordinated, regionally connected care — ensuring patients can access the right services, in the right place, at the right time."
"Guided by our charitable mission, we are committed to meeting the evolving healthcare needs of the region — including sustaining Robbinsdale Hospital as a critical safety-net provider of Level 1 trauma and emergency services and investing in expanded capacity and outpatient care at Maple Grove Hospital to meet rising demand in one of the metro’s fastest-growing communities. Our approach is to partner with local leaders, understand community needs and invest for the long term. Together, we will strengthen locally driven care for generations to come," Gassen added.
SEIU Healthcare Minnesota and Iowa, which represents thousands of healthcare workers at North Memorial, shared the following statement on the combination:
"Hearing news of yet another proposed healthcare merger in Minnesota is worrisome for SEIU members both as staff and patients. At a time when healthcare costs are skyrocketing for Minnesota families and frontline healthcare workers are getting squeezed by short staffing levels, this latest attempt at consolidation brings many concerns. It is especially concerning because previous merger attempts by Sanford Health to come into Minnesota have failed due to their values and corporate behavior.
"North Memorial is a community institution and it needs to prioritize healing members of our community and being an institution Minnesotans are proud to have in our state. As with all healthcare merger attempts, we are calling on Attorney General Keith Ellison to use all of his office’s powers within the law to provide oversight into this proposed merger and ensure the interests of Minnesota’s workers and patients are protected."
MN Attorney General seeks community input on acquisition
Local perspective:
The Minnesota Attorney General's Office is seeking public comment on the combination of North Memorial Health and Sanford Health.
Attorney General Keith Ellison is going to review the acquisition under Minnesota's health care transaction law, antitrust law and charities law. He will also determine if the transaction is in the public's interest.
To provide input on the acquisition, click here or call (651) 296-3353 (Metro) or (800) 657-3787 (Greater Minnesota).
The Source: A press release from Sanford Health.