Intermountain and Sanford Health—a leading not-for-profit health system based in Sioux Falls, South Dakota—have signed a letter of intent to merge in 2021. The boards of trustees of both organizations voted unanimously Friday, October 23, to begin the due diligence process, which will take several months.
Intermountain and Sanford Health—a leading not-for-profit health system based in Sioux Falls, South Dakota—have signed a letter of intent to merge in 2021. The boards of trustees of both organizations voted unanimously Friday, October 23, to begin the due diligence process, which will take several months.
This is an agreement to explore a merger, not an acquisition. Intermountain isn’t buying Sanford Health, and Sanford Health isn’t buying Intermountain. In the meantime, both organizations will continue operating as separate organizations. The merger is subject to state and federal approvals.
“As we work to finalize this merger, your day-to-day responsibilities won’t change,” says Intermountain CEO Marc Harrison, MD. “Please continue to focus on the important work you do lead and support your teams. Our commitment to the communities we serve will remain paramount.”
Sanford Health is one of the nation’s largest not-for-profit rural health systems and is a respected leader in post-critical care, genomic medicine, senior care, research, and other areas. The system includes 46 hospitals and 210 clinics in South Dakota, North Dakota, Minnesota, and Iowa; 1,500 providers; 48,000 employees; 233 Good Samaritan Society senior care centers across 24 states; and World Clinics in eight countries outside the U.S. In addition, Sanford Health provides health insurance for about 200,000 members.
Joining with Sanford Health would enable Intermountain to accelerate our mission and shared vision to:
- Improve access to high-quality, affordable care for more people in communities across our combined footprint
- Bring needed health services to more people, such as treatment of chronic disease, telehealth and digital health, value-based insurance plans, rural healthcare, and senior health services
- Expedite solutions to keep people healthy and to address social determinants of health—working upstream in areas such as access to education, healthy food, and transportation
“Both Intermountain and Sanford Health are highly trusted in our respective service areas,” Marc says. “We’re both driven by a similar healthcare pioneering heritage that represents hard work, discovery, and doing the right thing. Intermountain is at the forefront of value-based and digital healthcare, and Sanford Health is one of the nation’s leading systems in rural healthcare delivery and clinical research. Combined, we’d employ 89,000 caregivers, operate 70 hospitals and 435 clinics across seven states, and insure 1.1 million people.”
“For more than two decades, we've been focused on good growth, with the goal of driving innovation and bringing more affordable and accessible healthcare to the communities we serve,” says Kelby Krabbenhoft, president and CEO of Sanford Health. “Today we're marking another major milestone in our long history of working to change the course of healthcare across the globe. By coming together with Intermountain Healthcare, we will improve the health and well-being of the communities we serve and strengthen our impact in healthcare delivery and value.”
Once the merger is finalized, our combined organization would:
- Have headquarters in Salt Lake City and additional corporate offices in Sioux Falls
- Be led by Marc Harrison, MD, president and CEO, with Kelby Krabbenhoft, Sanford Health’s current president and CEO, as president emeritus
- Have one board of trustees with Gail Miller, Intermountain’s board chair, serving as chair of the merged board
- Have the legal name of Intermountain Healthcare; both organizations would continue to use our current brand names—Intermountain Healthcare and Sanford Health—for the foreseeable future
“The Sanford Health team is excited to join with Intermountain,” Marc says. “Our reputation as a sought-after partner is because of your hard work and shared passion to improve health for all. Thank you for your ongoing support of our mission and commitment to our patients, members, and the communities we serve. Together, we have a unique opportunity to create a national model for not-for-profit value-based care.”
This Q&A document will give more information. Keep watching the Caregiver Daily Brief for more updates and information. Send questions to dailybrief@imail.org. You’re also invited to join the Intermountain and Sanford Yammer group to get frequent updates on the letter of intent and to share questions.