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Sanford Health to Combine With North Memorial, Pledging $600 Million for Twin Cities Hospitals

Regulators must approve the deal before any changes take effect.

Overview

  • A definitive agreement announced Friday between Sanford Health and North Memorial Health sets up a single nonprofit system.
  • The combined group pledged $600 million to upgrade Robbinsdale’s Level 1 trauma hospital and to double the size of Maple Grove Hospital.
  • Sanford CEO Bill Gassen would lead the new system, while North Memorial’s Trevor Sawallish would oversee the Twin Cities region and two North Memorial directors would join the board.
  • The companies say they aim to close later this year, but Minnesota Attorney General Keith Ellison said his office will review the deal under state charity, transaction, and antitrust laws.
  • The move follows Sanford’s failed 2023 attempt to merge with Fairview, and SEIU is warning about possible higher costs and thinner staffing as oversight begins.