MINNEAPOLIS (AP) — A merger that would have created one of the largest medical services companies in the Upper Midwest has come to nothing.
Minneapolis-based Fairview Health Services and Sioux Falls, South Dakota-based Sanford Health announced Thursday that they will not proceed with a merger that has been in talks since late last year. That would create a system with more than 50 hospitals and about 78,000 employees.
Second time in 10 years…
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MINNEAPOLIS (AP) — A merger that would have created one of the largest medical services companies in the Upper Midwest has come to nothing.
Minneapolis-based Fairview Health Services and Sioux Falls, South Dakota-based Sanford Health announced Thursday that they will not proceed with a merger that has been in talks since late last year. That would create a system with more than 50 hospitals and about 78,000 employees.
It is the second time in a decade that the two companies have considered a merger but failed to complete it. minneapolis star tribune report.
This latest attempt has met with fierce opposition at the University of Minnesota, which is affiliated with Fairview. The university sold its teaching hospital to Fairview in 1997 and opposed the idea of out-of-state corporate ownership of the University of Minnesota Medical Center in Minneapolis. The combined system was to be based in Sioux Falls, South Dakota’s largest city.
A statement from the CEOs of both companies said they had determined that they could not proceed with the merger without the support of their stakeholders.
The two companies first considered a merger in 2013, but met with strong political opposition.
The Minnesota legislature this spring gave the state attorney general additional powers to scrutinize health care mergers, including the Sanford-Fairview proposal.
The partnership between Fairview and the University of Minnesota includes financial support from Fairview for the school’s academic medical mission. The agreement will run until 2026, but both parties have the option to give notice by the end of this year if they wish to end the partnership. Fairview said the current deal is not financially sustainable.
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