The merger talks are off between Sanford Well being and Intermountain Healthcare, only a month after an settlement was introduced and simply over every week after Sanford’s CEO abruptly stepped down.
Former Sanford CEO Kelby Krabbenhoft left Nov. 24 in what the board referred to as a mutual resolution after making the controversial declare that he did not must put on a masks as a result of he cannot transmit COVID-19 after contracting the coronavirus. Sioux Falls, S.D.-based Sanford cited the management change in its resolution to pause present merger and acquisition exercise whereas they deal with different wants.
“With this management change, it is an necessary time to refocus our efforts internally as we assess the long run course of our group,” Sanford’s new CEO, Invoice Gassen, mentioned in a press release. “We proceed to prioritize caring for our sufferers, our individuals, and the communities we function we glance to form our path ahead.”
The doomed deal would’ve shaped a 70-hospital system with $15 billion in annual income, making it the seventh largest not-for-profit well being system by income. Salt Lake Metropolis-based Intermountain’s CEO, Dr. Marc Harrison, was poised to change into CEO of the brand new system.
In a press release, Harrison mentioned Intermountain is dissatisfied however understands the current management change at Sanford influenced its priorities.
“There’s a lot to admire concerning the work that Sanford Well being is doing,” he mentioned. “We proceed to share a robust imaginative and prescient for the way forward for healthcare.”
Intermountain initially mentioned Krabbenhoft’s retirement didn’t change its plans to finalize the merger by mid-2021.
Krabbenhoft, who had been Sanford’s CEO since 1996, got here beneath scrutiny in late November after writing in an inner electronic mail to Sanford’s 50,000 workers that masks sporting “defies its efficacy and objective” and sends an “untruthful message that I’m inclined to an infection or may transmit it.” The following day, Sanford workers acquired one other electronic mail from a bunch of Sanford executives that mentioned they regretted that the CEO’s message “left many pissed off and dissatisfied.”
Sanford has 46 hospitals and operates in North Dakota, South Dakota, Northwest Iowa and Western Minnesota. The system drew nearly $7 billion in complete income in 2019. Intermountain, which drew $7.6 billion in income final yr, has 24 hospitals and operates in Utah, Idaho and Nevada.