North Memorial Medical Center (contributed)
ROBBINSDALE, Minn. (KFGO WCCO) – North Memorial Health plans to merge with South Dakota-based Sanford Health as part of what’s being described as a $600 million investment for services in the Twin Cities.
While the deal needs official approval from state and federal regulators, it would likely help stabilize North Memorial’s flagship hospital in Robbinsdale.
“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.
Sanford expects the partnership to close sometime this year. Sanford has attempted to merge with another Twin Cities hospital system, Fairview, multiple times. Those proposals eventually dissolved due to concerns about an out-of-state provider taking over M Health Fairview at the University of Minnesota.
North Memorial is a different situation, however. They have no ties to the state, and are run by a private group.
Minnesota Attorney General Keith Ellison also announced Friday his office will review the proposed transaction under the state’s health care transaction law charities law, and antitrust law, to determine compliance, including whether the transaction is in the public interest.
“As we have done and are currently doing with other healthcare transactions, we are conducting a thorough review of this potential acquisition to ensure it complies with the law and is in the public interest,” said Ellison. “Proposed health care consolidation requires careful examination. As long as I am Attorney General, I will use the full range of regulatory tools to protect Minnesotans’ access to quality, affordable healthcare.”
The announced merger comes as hospitals across Minnesota are trying to stabilize financing, especially Hennepin County Medical Center which they say is in danger of closing without funding coming from the state legislature.
HCMC is the state’s top level one trauma center, and if they fail much of the burden would fall on North Memorial, and Regions in St. Paul.
There are a number of funding options on the table for HCMC, include expanding and increasing a tax that had been used to fund construction of Target Field. But that deal probably won’t be finalized until the session comes to a close, and only if lawmakers can agree on a proposal.
The news of a Sanford-North Memorial merger was not welcome to the Service Employees International Union, who say it is cause for concern.
“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,” the SEIU said in a statement. “It is especially concerning because previous merger attempts by Sanford Health to come into Minnesota have failed due to their values and corporate behavior.”
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