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Lawmakers question hospital CEOs on proposed merger

Lawmakers are considering a bill that would require the state health commissioner to sign off on all major health care company mergers.

ST PAUL, Minn. — M Health Fairview could merge with Sanford Health from South Dakota and the proposed move is garnering both scrutiny and support.

At a joint meeting of the Minnesota House commerce and health committees Monday, hospital leaders made their case to lawmakers for the first time.

"Our merger with Sanford means we can spread the costs of innovative new technologies across a broader care delivery system," said James Hereford, president and CEO of Fairview Health Services.

"This merger is about doing more for those we serve and every day we delay is a missed opportunity to realize the significant benefits for our patients," Sanford Health president and CEO Bill Gassen added.

The CEOs said they began talks about merging in May last year and are looking at a March 31 start date. Several state representatives and Attorney General Keith Ellison said that's too soon. Ellison recommended the hospitals wait.

"March 31 as a target date is too ambitious," Ellison said. "We believe with all the research that we have had to do and have not had a chance to complete, this date is not in the best interest in the state of Minnesota."

Ellison has held several community meetings about this statewide. An M Health Fairview spokesperson says public support has outnumbered criticism, with 17 people for it and 10 against it in Bemidji, and 27 for it and 12 against it in Worthington.

Minnesota Nurses Association members said the time will never be right for the U of M's hospital to merge with Sanford, which calls itself America's largest rural health system.

"My concern is this," said Kara Pratt, a labor nurse at St. John's Hospital in Maplewood. "How is some executive in Sioux Falls supposed to know what's best for my patients? Do they even know who the Karen people are? Do they know what the Hmong community needs? … They're not used to taking care of urban hospitals."

"We are committed also to working upstream to focus on social determinants of health," Gassen said.

MNA held a rally before the hearing with U of M medical students, who said M Health Fairview is ranked top three nationwide in primary care, but of the 124 medical schools ranked each year, Sanford doesn't make the list.

"Merging our medical school with Sanford would reduce the academic integrity of our university, causing fewer students to come and train here," student Allison Leopold said.

"Nothing will change for the University of Minnesota as a result of this merger … including the level of funding, clinical partnership, and the teaching mission," Gassen said. 

As legislation to codify Minnesotans’ right to reproductive autonomy heads to Gov. Walz to be signed into law this week, the CEOs also emphasized "access to gender-affirming and comprehensive reproductive health care will not change as a result of this merger."

Lawmakers also discussed a bill that would require the state health commissioner to sign off on all major health care company mergers.

   


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