Minnesota House Democrats warned Monday that a merger between Fairview Health Services and Sanford Health could raise physical care prices or lead to the closure of hospitals and clinics.
In November, Fairview and Sanford announced plans to merge into a singles fitness formula led by current Sanford CEO Bill Gassen. The deadline to conclude the deal is March 31, which DFL lawmakers and fitness advocates have said is too early.
Rep. Robert Bierman, DFL-Apple Valley, on Monday proposed a bill to the House Joint Health and Commerce Policy and Finance committees that would require health care to get approval from the state’s physical health commissioner before mergers.
“Because of the rush to close the deal, this factor has become paramount now,” Bierman said. will improve the delivery of quality health care for Minnesotans across the state, while gaining better access and affordability.
Fairview, founded in Sioux Falls in Sanford and Minneapolis, said it would remain a nonprofit and retain its own regional leaders and councils. Attorney General Keith Ellison is investigating the merger and has held public hearings to determine whether Minnesotans believe the merger would be beneficial. Earlier this month, he asked fitness service providers to push back the March 31 deadline.
One of lawmakers’ top considerations is the University of Minnesota Medical Center, which is owned by Fairview and is the university’s main training hospital.
The dean of the medical school, Dr. Jakub Tolar, told the committee that the merger went ahead without health care providers contemplating its potential impact on the university. An “active participant” in merger discussions and recommending that the university had not been fully involved was “false and dishonest. “
Myron Frans, the university’s senior vice president of finance and operations, called on lawmakers to stop the merger and demand the university’s participation in any deal between Sanford and Fairview.
Sanford CEO Gassen and Fairview CEO James Hereford told House members that “at this time” they would delay the date of the merger.
However, Gassen said they would possibly delay the merger, based on feedback they get from interested parties and the attorney general’s office.
Rep. Zack Stephenson, DFL-Coon Rapids, told Gassen his reaction was “disappointing. “
“All stakeholders together. . . to be united enough to ask them to spend more time on this,” said Stephenson, who chairs the Chamber’s Commerce Policy and Finance Committee.
Representative Tina Liebling, DFL-Rochester, CEOs, “What’s the Rush?”
Hereford said it is in the public interest that the merger be completed expeditiously.
“Health care delivery has fundamentally replaced and it is imperative for us in our role to serve other Minnesotans, to ensure we adapt, innovate and move forward,” Hereford said.
Republican members of the House seemed more open to the merger, noting that Sanford has many clinics in rural Minnesota and that a merger could be just one of the facilities.
In 2013, Sanford and Fairview announced a similar deal, but state lawmakers and then-Attorney General Lori Swanson crushed it. Swanson said his biggest fear at the time was that Sanford, an out-of-state organization, would run the University of Minnesota hospital in Fairview. and it may simply use Minnesota taxpayer dollars to expand to other states.
Fairview employs more than 31,000 workers at 11 hospitals and Sanford has 47 medical centers employing 2,800 physicians and providers in the Dakotas and the Minnesota metropolitan area.
House committees will discuss the bill on Wednesday.
*This story has been corrected to reflect that Fairview owns the University of Minnesota Medical Center and U. S. Medical School. U. S.
by Michelle Griffith, Minnesota reformer January 30, 2023
Minnesota House Democrats warned Monday that a merger between Fairview Health Services and Sanford Health could raise physical care prices or lead to the closure of hospitals and clinics.
In November, Fairview and Sanford announced plans to merge into a singles health care formula led by current Sanford CEO Bill Gassen. The deadline to complete the deal is March 31, which DFL lawmakers and fitness advocates have said is too early.
Rep. Robert Bierman, DFL-Apple Valley, on Monday proposed a bill to the House Joint Health and Commerce Policy and Finance committees that would require health care to get approval from the state’s physical health commissioner before mergers.
“Because of the rush to close the deal, this factor has become paramount now,” Bierman said. will improve the delivery of quality health care for Minnesotans across the state, while gaining better access and affordability.
Fairview, founded in Sioux Falls in Sanford and Minneapolis, said it would remain a nonprofit and retain its own regional leaders and councils. Attorney General Keith Ellison is investigating the merger and has held public hearings to determine whether Minnesotans believe the merger would be beneficial. Earlier this month, he asked fitness service providers to push back the March 31 deadline.
One of lawmakers’ top considerations is the University of Minnesota Medical Center, which is owned by Fairview and is the university’s main training hospital.
The dean of the medical school, Dr. Jakub Tolar, told the committee that the merger went ahead without health care providers contemplating its potential impact on the university. An “active participant” in merger discussions and recommending that the university had not been fully involved was “false and dishonest. “
Myron Frans, the university’s senior vice president of finance and operations, called on lawmakers to stop the merger and demand the university’s participation in any deal between Sanford and Fairview.
Sanford CEO Gassen and Fairview CEO James Hereford told House members that “at this time” they would delay the date of the merger.
However, Gassen said they would possibly delay the merger, based on feedback they get from interested parties and the attorney general’s office.
Rep. Zack Stephenson, DFL-Coon Rapids, told Gassen his reaction was “disappointing. “
“All stakeholders together. . . to be united enough to ask them to spend more time on this,” said Stephenson, who chairs the Chamber’s Commerce Policy and Finance Committee.
Representative Tina Liebling, DFL-Rochester, CEOs, “What’s the Rush?”
Hereford said it is in the public interest that the merger be completed expeditiously.
“Health care delivery has fundamentally replaced and it is imperative for us in our role to serve other Minnesotans, to ensure we adapt, innovate and move forward,” Hereford said.
Republican members of the House seemed more open to the merger, noting that Sanford has many clinics in rural Minnesota and that a merger could be just one of the facilities.
In 2013, Sanford and Fairview announced a similar deal, but state lawmakers and then-Attorney General Lori Swanson crushed it. Swanson said his biggest fear at the time was that Sanford, an out-of-state organization, would run the University of Minnesota hospital in Fairview. and it may simply use Minnesota taxpayer dollars to expand to other states.
Fairview employs more than 31,000 workers at 11 hospitals and Sanford has 47 medical centers employing 2,800 physicians and providers in the Dakotas and the Minnesota metropolitan area.
House committees will discuss the bill on Wednesday.
*This story has been corrected to reflect that Fairview owns the University of Minnesota Medical Center and U. S. Medical School. U. S.
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Michelle Griffith covers Minnesota politics and politics for the reformer, with a focus on underserved communities. Most recently, she was a reporter at the Fargo-Moorhead Forum in North Dakota, where she covered governmental, local and indigenous issues. For two years, he also served on the board of Report for America, a national nonprofit that puts news hunters in local newsrooms and news deserts. She lives in St. Paul and enjoys weaving and watching documentaries in her spare time.
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