Sanford Health, North Memorial Health Deal Moves Forward Under 10-Year Minnesota AG Oversight

Under the memorandum of understanding, Sanford will invest $600 million in North Memorial Health, including $500 million for the expansion of Maple Grove Hospital and $100 million for Robbinsdale Hospital.

Sanford Health’s proposed acquisition of North Memorial Health will move forward under a 10-year oversight agreement with the Minnesota Attorney General’s Office, following a review of the transaction and commitments aimed at protecting healthcare access across the state.

Under the memorandum of understanding, Sanford will invest $600 million in North Memorial Health, including $500 million for the expansion of Maple Grove Hospital and $100 million for Robbinsdale Hospital. The agreement also requires the combined system to maintain charity care and participation in Medicare and Medicaid, honor existing collective bargaining agreements, retain employees in good standing, and preserve current levels of air and ground emergency transportation services.

The combined organization will additionally invest $15 million in an initiative supporting small and independent healthcare providers in Minnesota. Other commitments include enhancing Level 1 trauma care and maintaining a corporate presence in the state.

The Minnesota Attorney General’s review began May 1 and included required transaction materials, public meeting comments, and requests from labor unions and other stakeholders.

Attorney General Keith Ellison said the commitments are in the public interest and will make Sanford and North Memorial accountable for the agreed measures over the next decade.

Sanford Health President and CEO Bill Gassen said the organization appreciated the attorney general’s review. North Memorial Health CEO Trevor Sawallish said the systems had focused on protecting existing care while identifying investments needed at the two hospitals.

The transaction, announced in definitive form on August 28, will make North Memorial Health a subsidiary of Sanford Health and establish it as the anchor of Sanford’s new Twin Cities care delivery region. The region will be led by Sawallish and governed by a local board.

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

Sanford Health, based in Sioux Falls, South Dakota, operates 58 hospitals and nearly 300 clinics and employs about 55,000 people. North Memorial Health operates two hospitals and more than 20 clinics, with approximately 6,800 employees.

The systems have said the transaction will support Robbinsdale Hospital’s safety-net services, including its Level 1 trauma center and emergency care, while enabling Maple Grove Hospital to expand its emergency, inpatient, and surgical capacity and add primary and specialty care services.

The agreement follows scrutiny of the transaction from Minnesota officials and stakeholders, including SEIU Healthcare Minnesota and Iowa, which have raised concerns about the impact of the combination on workers and healthcare costs.

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