Sanford Health, Good Samaritan complete merger
- Sanford Health completed its merger with Good Samaritan Society on New Year's Day, combining two of Sioux Falls, South Dakota's, largest employers.
- The deal blends Good Samaritan's senior care services into Sanford Health's system of 44 hospitals across nine states.
- Together the two nonprofits offer integrated healthcare, research and insurance in 26 states and nine countries.
Hospitals and health systems are increasingly looking to mergers and acquisitions to expand their portfolios and compete on a multiregional or national scale. Driving the trend are higher costs, lower reimbursements and softer inpatient volumes as more care shifts to outpatient delivery sites.
By adding senior care services to its overall system, Sanford gains another vehicle for engaging older Americans as they require more care and specialized services outside the hospital setting. It also positions Sanford and Good Samaritan to compete more aggressively against seniors-focused startups like Aspire and Oak Street Health.
Good Samaritan members approved the merger in June, and the deal cleared the required regulatory hurdles in August.
But as more providers turn to mergers, acquisitions and other affiliations to increase market share and strengthen their position in a changing healthcare environment, concerns have grown about the impact on competition and consumers. At the same time, some states feel competition alone hasn't served their communities and are taking steps to limit price increases and ensure access to care. Tennessee, Virginia and West Virginia recently enacted laws protecting mergers from federal antitrust regulators, in exchange for prolonged state oversight and regulation.
Kelby Krabbenhoft, president and CEO of Sanford Health, said the combined organization "will create a national model on how to deliver exceptional care through the full spectrum of life."
David Horazdovsky continues as CEO of Good Samaritan and joins Sanford's leadership team. Randy Bury, previously Sanford's chief administrative officer, is now president of Sanford Health.
The new company employs nearly 50,000 employees, including 1,382 physicians across more than 80 specialty areas, and has annual revenue of more than $5 billion. In addition to the 44 hospitals, there are some 200 senior living facilities. The company also provides insurance to 190,000 people through Sanford Health Plan.
- Sanford Health Sanford Health, Good Samaritan Society complete affiliation