MINNEAPOLIS — Minneapolis-based Fairview Health Services and Sioux Falls-based Sanford Health have agreed to delay the closing of their merger for two months.
Fairview and Sanford said in a joint statement that their consolidation that was set to close on March 31 will now be pushed to May 31.
The mega-merger push comes after several weeks of negative feedback from the Minnesota legislature, community meetings and a direct request from Minnesota's Attorney General Keith Ellison to delay it.
The proposed merger, which was announced in November, would create one of the largest health care providers in the country.
People shared concerns about the merger at several listening sessions that Ellison's office hosted across the state.
Last Month, Ellison wrote in a statement: "the University of Minnesota has indicated that this proposed merger is moving too fast."
Several unions oppose the merger, including the International Association of Machinists and Aerospace Workers, or IAM. It represents workers in the airline, woodworking, manufacturing, health care and other industries in Minnesota and across the country.
Sanford is one of the largest rural health systems in the U.S. and Fairview is one of the biggest in the Twin Cities.
The two health systems explored a possible merger in 2013 but the deal fell apart after concerns from state leaders over the control of the University of Minnesota Medical Center.
Fairview has over 80 primary and specialty care clinics, 31,000 employees and 11 hospitals -- including the U's medical center.
Sanford has 224 primary and specialty clinics, 47,000 employees and 47 hospitals.
Here is Friday's statement on the two-month delay:
"We have voluntarily extended our target planning date for completion of the merger to May 31, 2023. Consistent with our statements at the Attorney General’s community meetings and at the legislature, we continue to work cooperatively with the Attorney General to ensure they have the information necessary for their review. In the meantime, we continue to do the important planning work within our organizations to be ready to best serve our patients and people on day one following close."
