Sanford Health, UnityPoint 'megamerger' deal called off

Sanford Health
An $11 billion megamerger planned between South Dakota-based Sanford Health and Iowa-based UnityPoint has been called off, officials confirmed Tuesday. (Sanford Health)

An $11 billion megamerger planned between South Dakota-based Sanford Health and Iowa-based UnityPoint has been called off, officials confirmed Tuesday. 

In June, the two health systems announced the planned merger deal that would have created one of the 15 largest nonprofit health systems in the country. With plans to become leaders in “personalized primary care," they said they intended to complete the deal by the end of the year. 

Executive management teams and physicians from both health systems worked to provide a merger recommendation to both boards over the last 18 months.

Webinar This Week

Curating a Higher Level of Personalized Care: Digital Health + Mom

A long-term digital health strategy is needed to respond to the technology demands of the modern patient while thriving as an independent hospital in a fiercely competitive market. In this webinar, Overlake and one of its digital health partners, Wildflower Health, will discuss how Overlake has approached digital health and why it chose to focus early efforts on expectant moms within its patient population.

RELATED: 10 healthcare deals that made headlines this year

“We were excited at the opportunity our combination would have provided to create a new health system of national prominence," said Kelby Krabbenhoft, president and CEO of Sanford Health, in a statement. "We are disappointed that the UnityPoint Health board failed to embrace the vision. Our focus now is on the patients and communities we serve and the 50,000 people working tirelessly to support them.”

Sanford Health is a system with 44 hospitals, 482 clinics and more than 200 senior care centers in nine countries and 26 states. UnityPoint is a nonprofit network of 32 hospitals as well as clinics and home care services in Iowa, Illinois and Wisconsin. The combined organization would have employed more than 83,000 staff and 2,600 physicians with operations in 26 states and nine countries, including hospitals, clinics, health plans and networks, post-acute care, research, innovation and other lines of business.

Suggested Articles

Walmart has delayed a new policy originally set to begin January 1 that would have required electronic prescriptions for controlled substances.

Blue Cross Blue Shield of Michigan announced that it has joined up with seven providers in the state to launch “Blueprint for Affordability."

Healthcare system leaders and individuals need to look inward to tackle social determinants of health, Donald Berwick said.