Sanford Health to Integrate North Memorial Health in Deal Backed by $600 Million Investment

The transaction is expected to close before the end of 2026, subject to regulatory approvals and customary closing conditions.

Sanford Health has entered into a definitive agreement to integrate North Memorial Health, with a planned $600 million investment to strengthen healthcare infrastructure and expand services in the Minneapolis-Twin Cities region.

Under the agreement announced Friday, North Memorial Health would become a subsidiary of Sanford Health and serve as the foundation of a newly created Twin Cities care delivery region. North Memorial CEO Trevor Sawallish is expected to lead the regional unit in partnership with a local board of directors. Two current North Memorial board members will also transition to designated roles on Sanford Health’s Board of Trustees.

The transaction is expected to close before the end of 2026, subject to regulatory approvals and customary closing conditions.

The proposed combination is expected to stabilize operations at North Memorial Health-Robbinsdale Hospital, a safety-net facility whose Level 1 trauma center and emergency services have faced financial pressure. Sanford also plans to invest in expanding Maple Grove Hospital, including doubling the hospital’s size, increasing inpatient and surgical capacity, and enhancing emergency care services.

Sanford Health said the deal would also improve access to virtual specialty care, clinical trials, insurance coverage through Sanford Health Plan, and workforce recruitment initiatives.

Sanford Health, one of the largest rural nonprofit health systems in the United States, operates 58 hospitals and nearly 300 clinics across the Midwest. The organization reported nearly $11.7 billion in revenue and $210.9 million in operating income in 2025.

The acquisition would further expand Sanford’s Minnesota footprint, which already includes affiliations with 20 medical centers and 74 clinics. The deal also marks Sanford’s second major attempt in recent years to expand deeper into the Minneapolis market after its proposed merger with Fairview Health Services collapsed in 2023.

North Memorial Health operates two hospitals, more than 20 clinics, and employs approximately 6,800 workers. The health system has recently faced financial challenges tied to rising operational costs and high Medicare patient volumes.

The proposed transaction has already drawn scrutiny from Minnesota Attorney General’s Office. Attorney General Keith Ellison said the office would conduct a detailed review of the merger under the state’s healthcare transaction oversight laws and invited public input on the proposal.

Meanwhile, SEIU Healthcare Minnesota and Iowa raised concerns regarding healthcare affordability, staffing pressures, and Sanford’s previous expansion attempts in Minnesota.

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