Two major U.S. health systems announce intent to merge

In the American Northwest and upper Midwest, a digitally progressive health system that operates 24 hospitals is moving to merge with one that specializes in rural care delivery and operates in 24 states and 10 countries.

Salt Lake City-based Intermountain Healthcare and South Dakota-headquartered Sanford Health announced their pursuit of one another Oct. 26.

Both are not-for-profit organizations. They expect due diligence, governmental approvals and other paperwork details to wrap up in time for the closing of an official merger in 2021, according to an announcement.

The combined entity will make its home office in Salt Lake City while keeping corporate offices in Sioux Falls. It will employ more than 89,000 people and insure 1.1 million.

The parties say their aim is to bring together two influential health systems “as a model for improving access to high value healthcare across the U.S.”

Both organizations will keep their respective names indefinitely. The president of Intermountain, Marc Harrison, MD, will become president and CEO of the combined organization. Kelby Krabbenhoft, president and CEO of Sanford Health, will serve as president emeritus.

Trustees from both systems will combine to form a single board. Gail Miller, current chair of Intermountain’s board, will serve as board chair for the merged organization.

“This merger enables our organizations to move more quickly to further implement value-based strategies and realize economies of scale,” Harrison says in the announcement.

“Today we’re marking another major milestone in our long history of working to change the course of healthcare across the globe,” Krabbenhoft adds. [W]e will improve the health and wellbeing of the communities we serve and strengthen our impact in healthcare delivery and value.”

Dave Pearson

Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.

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