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Intermountain Healthcare, Sanford Health Plan Merger

Intermountain Healthcare, Sanford Health Plan Merger

Intermountain Healthcare and Sanford Health have signed a letter of intent to develop a strategic partnership.

“Intermountain and Sanford have a shared vision of the future of health care 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 health care 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 health care 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 health care 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 health care delivery and value.”

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 health care across the U.S. The merger is expected to close in 2021 pending federal and state approvals.

The combined organization will employ more than 89,000 people, and operate 70 hospitals, many in rural communities. It will operate 435 clinics across seven states, provide senior care in 233 locations in 24 states, and insure 1.1 million people. The organization will have headquarters in Salt Lake City, Utah, and corporate offices in Sioux Falls, South Dakota.

Marc Harrison, M.D., president and CEO of Intermountain Healthcare, will be president and CEO of the combined organization. Kelby Krabbenhoft, president and CEO of Sanford Health, will serve as president emeritus. Both organizations will continue to operate under their current names for the foreseeable future.

Existing Board of Trustees from both systems will join to form a combined board. A new executive committee of the board will be created with equal representation from members of the Intermountain and Sanford Health boards. Gail Miller, current chair of the Intermountain Board, will serve as board chair for the merged organization.

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