Sanford Health and Fairview Health Services are postponing their $14 billion merger until May 31, the nonprofit health systems announced Friday.
The delay comes weeks after Minnesota Attorney General Keith Ellison (D) asked the companies to delay the deal, which is due to end on March 31, while his office continues to review it. At the time, Sioux Falls, South Dakota-based Sanford Health and Minneapolis-based Fairview Health Services said they were partnering with Ellison.
If approved, the merger would create a system of 50 hospitals with 80,000 employees under the name Sanford Health.
“We continue to work with the attorney general’s office to ensure they have the information they need for their review. In the meantime, we continue to do important planning work in the upcoming cases. its organization to be ready to best serve patients and people on the first day after it ends,” the companies said in a joint news release Friday.
However, according to Ellison’s office, Sanford Health and Fairview Health Services did not provide all the information the regulator requested.
“Additional time in itself is not sufficient to ensure that Minnesotans interests are protected: Parties should provide adequate responses to the attorney general’s office requests with sufficient time to review and analyze analysis,” a spokesman said in a statement. “We are reviewing all available options to ensure compliance. Attorney General Ellison is also aware of the efforts that lawmakers are exploring and has spoken to interested lawmakers. “
The University of Minnesota, where Fairview hospital is located, has expressed concern that its interests have not been fully considered. Sanford Health CEO Bill Gassen told community members last month that the merged company will honor longstanding agreements, which expire in 2026, with the university and center school medical center.
Sanford Health and Fairview Health Services planned to merge a decade ago, but the deal fell through in 2013 due to objections from then-Minnesota Attorney General Lori Swanson (D).
