Sanford Health and Fairview Health Services will delay the conclusion of their proposed merger for a second time, the nonprofit health systems said on Monday.
The proposed $14 billion deal, first announced in November 2022, was originally scheduled to close on March 31, pending regulatory approval. Sioux Falls, South Dakota-based Sanford and Minneapolis-based Fairview agreed in February to postpone the end date until May 31 to give Minnesota Attorney General Keith Ellison (D) more time to assess merger price.
Sanford and Fairview said Monday that they will delay completing the transaction until after May 31. Health systems will provide the attorney general’s office with a 90-day notice prior to the expected completion date. , set the earliest closing time in summer.
“We respect the attorney general’s office’s due diligence process and respect their request for more time as we continue to work to perfect our combination,” Sanford and Fairview said in a statement. a joint statement.
A spokesperson for the attorney general’s office said Monday that they are no longer requesting a postponement and that Fairview and Sanford told Ellison’s office last week that they would no longer close the deal in May.
The spokesman said that after learning of the latest delay, the attorney general’s office requested 90 days’ notice.
“The attorney general’s office learned last week that Fairview management has decided to postpone its planned merger with Sanford. While we are still working out the details of Fairview’s plan, we agree that the board Fairview leadership is required to focus their attention on key issues Fairview has reported an operating loss of $132.6 million in 2021, the latest annual financial data available.
In response, a Sanford spokesman said: “Ellison has repeatedly noted publicly that he wants more time and we are pleased to offer that in the interest of the ongoing partnership. The Attorney General requested 90-day notice of any future closing date, and we agreed to provide it.”
University of Minnesota regulators are concerned about an out-of-state entity controlling the University of Minnesota’s M Health Fairview Medical Center in Minneapolis, which Fairview acquired 26 years ago through a five-year agreement 2026.
In January, the university announced plans to purchase the facilities of East and West Bank University Medical Centers, Masonic Children’s Hospital, affiliated clinics and a surgery center, all of which are part of the M Health Fairview University Minnesota Medical Center campus.
Sanford and Fairview Health planned a partnership a decade ago, but the merger fell through amid objections from then-Minnesota Attorney General Lori Swanson (D).
