Sanford Health Poised to Acquire North Memorial Health, Expanding its Reach in Minnesota
Sioux Falls, South Dakota-based Sanford Health has announced plans to acquire North Memorial Health, a move that could significantly enhance its presence in Minnesota. This acquisition includes a substantial $600 million investment to bolster North Memorial’s facilities in the rapidly expanding Twin Cities market.
Strengthening Healthcare in the Twin Cities
The agreement, revealed on Friday, will transform North Memorial into a subsidiary of Sanford Health. It will serve as the “anchor” for Sanford’s new Twin Cities care region, led by North Memorial CEO Trevor Swallish and governed by a local board of directors. Additionally, two current board members will transition to serve on the Sanford Health Board of Trustees.
This transaction, projected to finalize by year’s end, is contingent upon regulatory approvals. Minnesota Attorney General Keith Ellison has already committed to reviewing the proposed deal.
Stabilizing and Expanding Hospital Services
Sanford Health and North Memorial Health have expressed that this affiliation will stabilize North Memorial Health-Robbinsdale Hospital, a critical safety-net hospital. Its Level 1 trauma center and emergency services are currently facing risks. Furthermore, North Memorial Health-Maple Grove Hospital will receive investments to double its capacity, supporting its role as the state’s largest birthing center.
Bill Gassen, President and CEO of Sanford Health, stated, “By joining forces as a nonprofit healthcare organization with shared Midwestern values and a deep commitment to the communities we serve, we will provide more coordinated, regionally connected care and ensure patients can access the right services at the right time and in the right place.”
Sanford Health’s Expanding Footprint
As the largest rural health system in the country, Sanford Health employs 55,000 people and operates 58 hospitals and nearly 300 clinics across the Midwest. Following a merger with Marshfield Clinic in Wisconsin and the Upper Peninsula of Michigan last year, Sanford reported 2025 revenues of nearly $11.7 billion with an operating income of $210.9 million.
Sanford’s presence in Minnesota includes partnerships with 20 medical centers and 74 clinics, primarily in the state’s western region. This acquisition marks Sanford’s second attempt to expand into the Minneapolis area after a previously planned merger with Fairview Health Services was canceled in 2023.
North Memorial Health’s Financial Challenges
North Memorial Health operates two hospitals, over 20 clinics, and employs 6,800 staff. It has been seeking state funds to manage its high Medicare burden and rising costs. A legislative bill to support a safety net system in Minneapolis was recently amended to exclude additional funding for North Memorial.
Trevor Swallish of North Memorial stated, “Through a targeted national search, Sanford has stood out as a partner that understands our true value and shares our belief that better – not just bigger – is what matters. This partnership is about staying strong for the long term – so that our patients continue to receive the care they need close to home and our teams receive the support they deserve.”
Future Plans and Community Reactions
Planned expansions include enhancements to Maple Grove Hospitals’ emergency care, increased inpatient and surgical capacity, and campus expansion for primary and specialty care. Sanford Health’s virtual specialty care initiatives, research trials, and improved recruitment strategies are also outlined.
Minnesota’s Attorney General emphasized the importance of thoroughly reviewing the acquisition to ensure compliance with the law and the public interest, inviting public commentary on the merger.
The Service Employees International Union (SEIU) Healthcare Minnesota and Iowa expressed concerns about the merger’s impact on care costs and staffing challenges, citing past issues with Sanford Health’s expansions in Minnesota.
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