Intermountain Healthcare and Sanford merge after Sanford CEO resigns



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SALT LAKE CITY – The merger between Sanford Health and Intermountain Healthcare, which has been dubbed a “match made in heaven” by a Utah healthcare executive, is now on indefinite hold.

“We are disappointed, but understand that the recent change in leadership at Sanford Health has influenced their priorities,” said Marc Harrison, President and CEO of Intermountain Healthcare. “There is a lot to admire in the work of Sanford Health. We continue to share a strong vision for the future of healthcare. “

The merger between the Midwestern healthcare system and Intermountain Healthcare, a Utah-based company with hospitals across the West, would have created one of the largest healthcare delivery systems in the country. When it was announced in October of this year, Harrison called the marriage of two systems founded by religious groups “a covenant made in heaven.”

Negotiations were stalled after Sanford Health President and CEO Kelby Krabbenhoft resigned following a controversy where he emailed Sanford staff saying he did not need to wear a mask because he had recovered from COVID-19, and he was wearing a mask was a “symbolic gesture”.

“For me, wearing a mask goes against the effectiveness and function of a mask and sends a false message that I am likely to be infected or that I could transmit it,” he said. he told staff at the South Dakota-based company in an email obtained by CNN.

He resigned a week later, leaving the post he had held for 25 years. Last week, Sanford Health’s board of directors named Bill Gassen as the organization’s new president and CEO.

In a statement Friday, Sanford executives joined Intermountain officials in announcing the suspension of all merger negotiations. The press release cited the change in leadership as a reason to “suspend ongoing merger and acquisition activities while they serve other organizational needs.”

Their new CEO didn’t consider whether the merger was going to die or just be delayed.

“With this change in leadership, it’s an important time to refocus our efforts internally as we assess the future direction of our organization,” said Gassen. “We continue to prioritize caring for our patients, employees and the communities we serve as we seek to shape our path.

Gassen added, “We have great respect for Intermountain Healthcare, Dr Marc Harrison and their leadership team and look forward to continuing to learn from each other.”

Intermountain Healthcare employs more than 41,000 people and has 23 hospitals and one virtual hospital in Utah, Idaho and Nevada. Sanford Health has 46 hospitals in 24 states and employs 48,000 people.

The boards of directors of the two companies voted unanimously in favor of the merger. The regulatory process began in March, but the actual merger is believed to have taken place in mid-2021.

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