What a Sanford Health-North Memorial Merger Could Mean for Patients, Robbinsdale Community

It’s no secret North Memorial Health and its Level 1 trauma center hospital in Robbinsdale have experienced steep financial challenges.

A recent report by CCX News detailed the challenges that were expected “to intensify” unless something happened to change course.

Robbinsdale-based North Memorial Health made a pitch this year to the state legislature for funding help, but was left out of a budget deal that instead provided a short-term financial infusion to Hennepin County Medical Center (HCMC) in Minneapolis, also a Level 1 trauma center.

Like HCMC, the Robbinsdale hospital takes in many patients who rely on government programs, resulting in less reimbursement for care.

However, according to health leaders, a planned merger between Robbinsdale-based North Memorial Health and the much larger Sioux Falls, S.D.-based Sanford Health could not only help stabilize the Robbinsdale hospital, but help the two nonprofit health systems grow.

“It was going to take something different in order for us to be successful in the long term of caring for our patients,” said North Memorial Health CEO Trevor Sawallish, speaking to Robbinsdale city leaders at a recent meeting. “We could probably survive, but we would survive in such a way that it was going to have a deeper and deeper impact on the care we provide because we just have so many headwinds coming to us.”

Background on Sanford Health

Enter Sanford Health.

Like North Memorial Health, Sanford Health treats thousands of patients through either uncompensated or under-reimbursed care. Leaders from both systems say each has about a 75 percent government-payer mix.

“At the end of the day, we have many of the same and similar challenges across our footprint,” said Bill Gassen, president and CEO of Sanford Health.

However, Sanford Health is also one of the nation’s largest rural nonprofit health systems with roughly 55,000 employees and 58 hospitals in its network. Compare that to North Memorial Health, which has just over 6,500 employees and two hospitals – the Robbinsdale location and the fast-growing and profitable Maple Grove Hospital. 

Sanford Health has also received hundreds of millions of dollars from South Dakota philanthropist T. Denny Sanford, for whom the health system is named.

Sanford Health CEO Bill Gassen (left) and North Memorial Health CEO Trevor Sawallish speak to the Robbinsdale City Council on June 2.

‘A Culture Match’

Sanford Health has sought a merger before. Several years ago it pursued a merger with Minneapolis-based Fairview Health Services, but that deal was called off in 2023.

Leaders say this proposed merger is different. 

“What really stood out to us was the fact that [Sanford Health] very much felt like North Memorial Health,” said Sawallish. “When I say ‘felt like,’ I mean is their commitment to the patient, their commitment to the communities that they serve – even when it’s not easy to serve those communities for financial headwinds or other things that are barriers to providing care.”

Gassen also noted financial strain by the Big Beautiful Bill Act, which resulted in massive cuts to Medicaid.

“We’re in a completely different time in the country right now,” said Gassen. “Public funding is not going to be the answer unfortunately for all of us because there’s just not enough of that to go around.”

Sawallish said North Memorial Health reached out to more than 20 different health care organizations across the country as a possible partner, but Sanford Health rose to the top.

For Sanford Health, the possibility of adding the expertise of Robbinsdale’s Level 1 trauma center and North Memorial’s ambulance network, which covers 8,500 square miles and extends into greater Minnesota, provides strategic value.

“This is a very important partnership for Sanford Health,” said Gassen.

Impact on Employees

As with many past mergers that have resulted in layoffs, Robbinsdale City Council Member Alejandro Caceres Aranda wondered how this one would impact employees.

Gassen answered that this potential merger isn’t about a “scarcity mindset” — the goal is not to shrink.

“That the mission wasn’t just to maintain services at Robbinsdale,” said Gassen. “That the goal and mission was to grow and expand that.”

Sawallish also said the merger could help North Memorial Health expand its cancer care.

“North has not been planning out growth in the Robbinsdale community because that just wasn’t on the table,” said Sawallish. “Now we have a new set of possibilities in terms of how we can grow, how we can leverage resources.”

Gassen said the North Memorial Health leadership team would remain in place as part of the merger. 

After hearing from both leaders, Robbinsdale Mayor Brad Sutton felt comfortable with the merger going forward.

“I have spent nights worrying about what happens with the hospital,” said Sutton. “I am very excited about this potential.”

Related: North Memorial Health Merging With Sanford Health

Maple Grove | Robbinsdale