Sanford Heatlh and Intermountain Healthcare announced Monday a plan to merge, which would create a healthcare network that spans seven states in the Rocky Mountain area as well as the Upper Midwest.
According to a release, thecombined organization is anticipated to employ over 89,000 people, and operate 70 hospitals and 435 clinics, many in rural communities.
The boards of both not-for-profit organizations approved a resolution to support moving forward with the due diligence process.
The organizations will enter this activity with the goal to sign a merger agreement that will bring both health systems together as a model for improving access to high value healthcare across the U.S.
The merger is expected to close in 2021 pending federal and state approvals.
“Intermountain and Sanford have a shared vision of the future of healthcare and have the aligned values needed to better serve more communities across the nation,” says Marc Harrison, M.D., president and CEO of Intermountain Healthcare. “
This merger enables our organizations to move more quickly to further implement value-based strategies and realize economies of scale. Through coordinated care, increased use of telehealth and digital health services, we will make healthcare more affordable for our communities.”
“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.”
The organization will have headquarters in Salt Lake City and corporate offices in Sioux Falls. Harrison will be the president and CEO for the combined organization, and Krabbenhoft will serve as president emeritus.