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Sanford, Fairview CEOs provide details about merger in letter to lawmakers, committee members

The letter included details about a capital investment of $500 million for Minnesota hospitals and facilities.

MINNEAPOLIS — The CEOs at Sanford and Minneapolis-based Fairview Health Services released a letter providing more details about the proposed mega-merger that was recently put on hold.

In the letter to Representatives Tina Liebling and Zack Stephenson — both chairs of the Minnesota House Health Finance and Policy Committee — as well as other committee members, Sanford Health CEO Bill Gassen and Fairview Health Services CEO James Hereford addressed some of the issues brought up during listening sessions. The letter also addressed some of their commitments, including $500 million of capital investments for projects at Fairview facilities and hospitals.

"This investment reflects our foundational commitment to ensuring increased access to health care for Minnesotans for generations to come," the letter reads.

A letter of intent highlighting "Cornerstone Commitments" was also included, detailing the future health system's intended corporate structure, in addition to giving insight into its future leadership team. 

"The Cornerstone Commitments function as a promise by Sanford Health to its benefactor in recognition of his current and intended future philanthropic support," the letter reads. "Post-close, the benefit of Mr. (Denny) Sanford’s generosity will extend to more Minnesota communities and patients, including those in legacy Fairview’s service area."

Last week, the proposed merger, which would create one of the largest health care providers in the nation, was pushed back to May 31 after several weeks of pushback from the Minnesota Legislature, community meetings and a direct request from Minnesota Attorney General Keith Ellison to delay the consolidation.

The letter also addressed several concerns from previous discussions about the merger, including the level of care post-merger, sale of facilities and the possibility of layoffs.

"This merger would not result in layoffs for non-executive employees or the closure or sale of facilities," the letter reads in part. "The combined system will continue to honor our existing Collective Bargaining Agreements, the merger will not result in diversion from the state of any assets donated in Minnesota, and both systems will continue to operate in a transparent  way to answer the questions of relevant stakeholders."

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