Sioux Falls, South Dakota — Sioux Falls-based Sanford Health and Salt Lake City-based Intermountain Healthcare have signed a letter of intent to develop a strategic partnership.
At a Monday morning news conference, Sanford President and CEO Kelby Krabbenhoft said Sanford has been focused on good growth for more than two decades, with the goal of driving innovation and bringing more affordable and accessible healthcare to the communities Sanford serves. He said the new agreement marks another major milestone in Sanford’s long history of working to change the course of healthcare across the globe. Krabbenhoft called the merger with Intermountain an opportunity to improve the health and well-being of the communities Sanford serves and strengthen the impact of the delivery and value of healthcare.
Dr. Marc Harrison is President and CEO of Intermountain Healthcare, and he said the two entities have a shared vision of the future of healthcare and have aligned values needed to better serve more communities across the nation. He said the merger enables the organizations to move more quickly to further implement value-based strategies and realize economies of scale. He said through coordinated care, increased use of telehealth and digital health services, the merger will make healthcare more affordable for the communities served by Intermountain and Sanford.
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.
Marc Harrison, M.D., President and CEO of Intermountain Healthcare, will be President and CEO of the combined organization. Kelby Krabbenhoft, Sanford Health President and CEO, will serve as president emeritus. Both organizations will continue to operate under their current names for the foreseeable future.
The combine organization will employ more than 89,000 people, and operate 70 hospitals, many in rural communities, including here in northwest Iowa. It will operate 435 clinics across 7 states and provide senior care and services is 366 locations in 24 states. The organization will have headquarters in Salt Lake City, Utah, and corporate offices in Sioux Falls.
