Sanford, UnityPoint to merge in $11B deal
Sanford Health and UnityPoint Health have agreed to merge to become an $11 billion nonprofit health system, making it among the 15 largest in the nation. The announcement underscores that health systems and hospitals are continuing to merge in megadeals.
The deal is expected to close by the end of 2019, the announcement reads.
UnityPoint, based in Iowa, is an integrated health system with 30,000 employees and relationships with more than 280 physician clinics, 32 hospitals and home care services in nine regions. UnityPoint also recently launched a $100 million venture fund to invest in digital health companies and solutions. Sioux Falls, South Dakota-based Sanford is already one of the largest health systems in the country, with 44 hospitals, 1,400 physicians and more than 200 Good Samaritan Society senior care locations in 26 states.
The combined entity will have an operating revenue of $11 billion and employ more than 83,000 staff and 2,600 physicians, with operations in 26 states and nine countries.
“Sanford and UnityPoint are two successful systems intent on controlling our own destiny,” Kelby Krabbenhoft, president and CEO of Sanford Health, said in a statement. “We believe that in the very near future, fully integrated health systems will drive greater value through affordable options for high-quality health care to patients, governments and employers.”
Under terms of the agreement, which is a letter of intent signed by both parties, the new company will be led by Krannenhoft, who will serve as president and CEO, and Kevin Vermeer, currently president and CEO of UnityPoint, who will serve as senior executive vice president. In addition, a new governing board will be established, with representatives from both health systems and unaffiliated board members.
“We are approaching our discussions very purposefully, with a clear and common vision for success,” Vermeer said in a statement. “First and foremost, our focus is on people. Working together, we will find new ways to broaden access to care––beyond the traditional settings––and take greater responsibility for the health of the populations we serve.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."