Sanford Health, North Memorial merger approved under 10-Year Minnesota oversight agreement
SIOUX FALLS, S.D. (Dakota News Now) - A major health care merger between Sanford Health and North Memorial Health is set to take effect Sept. 1, following a 10-year oversight agreement approved by Minnesota Attorney General Keith Ellison.
The deal, which stands in stark contrast to Sanford’s failed attempt to merge with Fairview Health in 2023, includes a $600 million funding commitment aimed at expanding and upgrading Minnesota medical facilities.
Under a newer Minnesota law, the attorney general’s office is required to review health provider mergers to ensure they serve the public interest.
“My office has entered into a 10-year oversight agreement with Sanford Health and North Memorial over their upcoming merger,” Ellison said. He added that the agreement secures critical investments, including “to the tune of $600 million, expanding Maple Grove Hospital and making vital upgrades to Robbinsdale Hospital.”
The financial influx comes as a welcome relief to North Memorial Health. CEO Trevor Sawallish acknowledged that without the merger, the provider faced a difficult financial outlook.
“Without this merger, we would have been facing that same scarcity mindset,” Sawallish said. “We would have been facing the same kinds of cuts that reduce services, reduce access, and reduce the availability of the great things that we do for the state.”
Sanford Health CEO Bill Gassen emphasized that the transition will be swift, with joint operations beginning immediately, as regional directors choose the finer points in each provider region.
“On September 1, we’ll bring our organizations together, and we will begin this journey,” Gassen said. “Combining North Memorial Health and Sanford Health is going to create better outcomes for more patients.”
A key point of the merger has been the continuation of specialized services, specifically gender-affirming care, which has become a highly politicized healthcare issue.
In Minnesota, where the merger was approved, healthcare leaders committed to maintaining these services.
“Affirming care will continue with this merger,” Sawallish said. “It is a critically important medical service that Minnesotans who need it deserve.”
However, Sanford Health operates heavily across state lines, including in South Dakota, where state law strictly bans gender-affirming medical care for minors. Gassen clarified that the merged organization will adapt to the regulatory landscape of each individual state.
“We will operate in accordance with the local laws in the state of South Dakota,” Gassen said.
The merger officially takes effect Tuesday, marking the beginning of a newly consolidated healthcare footprint across the Upper Midwest.
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