Sanford Health Finalizes Its North Memorial Acquisition Under a 10-Year Oversight Agreement
Sanford Health completed its acquisition of North Memorial Health on September 1, making it the "anchor" of a new Twin Cities region led by CEO Trevor Sawallish.
North Memorial adds two hospitals, more than 20 clinics, and 6,800 employees to Sioux Falls-based Sanford (58 hospitals, nearly 300 clinics, 55,000 employees). Sanford already operates or is affiliated with 20 medical centers and 74 clinics in Minnesota, mostly in the western part of the state.
Sanford committed $600 million to North Memorial over the next decade: $500 million to expand Maple Grove Hospital and $100 million for Robbinsdale Hospital, a safety-net hospital. It will invest another $15 million over three years in small and independent rural providers in Minnesota.
The deal closed under a 10-year oversight agreement with the Minnesota Attorney General's Office. Announcing it August 28, Attorney General Keith Ellison said that "while healthcare system mergers can all too often result in higher costs, fewer jobs, and less care," the agreement shows Minnesota's transactions law "is a powerful tool."
Sanford, which describes itself as the country's largest rural health system, had two earlier attempts to enter the Twin Cities through alternate mergers, most recently in 2023. Both attempts were called off.