Healthcare News This Week| January 13, 2019
Sanford Health and Good Samaritan Society Finalize Merger
The medical and health insurance provider, Sanford Health and the senior care provider, Evangelical Lutheran Good Samaritan Society, officially combined as of January 1st, 2019.
These two not-for-profit organizations formally combined on January 1st and celebrated their merging in the new year. Good Samaritan Society and Sanford Health are two of Sioux Falls, South Dakota’s largest employers. This agreement blends Good Samaritan’s senior care services with Sanford Health’s system of 44 hospitals across nine states to form a $5 billion not-for-profit health systems.
As combined, these two organizations offer integrated healthcare, research and insurance in over 26 states and 9 countries. Since these organizations combined into one, it employs close to 50,000 individuals and offers health services to clinics, hospitals, senior care institutes, and health insurance companies.
“We know that bringing these two organizations under one umbrella has many benefits for those we serve,” Sanford Health CEO and President Kelby Krabbenhoft said in a press release. He continued by stating, “Being on the forefront of the changing health care landscape made this historic opportunity a reality.”
Healthcare Weekly Insight on the Agreement
These two organizations started exploring an affiliation towards the end of 2017. In June 2018, Good Samaritan voted in favor of the affiliation. In August 2018, the deal cleared its required regulatory hurdles. The two nonprofit care providers have a plan to create a $7.5 billion entity by using Sanford’s existing health care system and Good Samaritan’s network of senior care services and centers.
By acquiring Good Samaritan Society, Sanford Health has become one of the largest health systems in the United States. In addition, this deal gave Good Samaritan Society relief from declining patient and budget deficits. The Society cut over 100 jobs in March 2017 due to their growing debt load and financial problems. Sanford Health will soon be addressing the financial troubles of the Society, as well as re-examining the opportunities this healthcare provider brings.
Health systems are constantly looking for acquisitions in order to expand their portfolios so that they can better compete with other multi-regional or national scale organizations. By adding Good Samaritan Society, Sanford Health increased its access to older Americans and senior care services. This affiliation allows both organizations to increase their market shares and strengthen their position in a competing industry.
“With the affiliation complete, leaders can begin the exciting work of exchanging knowledge and developing ideas to better serve our patients and residents,” Krabbenhoft said in the press release. “Bringing the expertise together will create a national model on how to deliver exceptional care through the full spectrum of life.”
More about Sanford Health
Sanford Health, one of the largest health systems in the United States, focuses on providing integrated delivery of health care, senior care and services and affordable insurance to the American population. They have a strong vision of improving the human condition through spiritual enrichment and innovative care with the promise of providing their patients and employees a flawless experience.
Sanford Health’s mission and values are led by their leadership team consisting of a board of trustee members, executive leadership members, and international board members. The organization’s CEO, Kelby Krabbenhoft has served as president and CEO since 1996 and continues to lead the members through this mission with the help of the following individuals: Nate White (COO), JoAnn Kunkel (CFO), and Jennifer Grennan (CLO).
Sanford was funded in 1893 to provide an integrated healthcare delivery system to Americans. Their headquarters are located in Sioux Falls, South Dakota, with offices in North Dakota and Minnesota. This nonprofit has served in several different areas of the world including Canada, China, Mexico, Ghana, and Germany.
More about Good Samaritan Society
The Good Samaritan Society was founded on faith and compassion, and was incorporated under the laws of the state of North Dakota in 1922 as a not-for-profit organization.
Their mission focuses on meeting the needs of their members and communities by creating an environment in which people feel loved and valued. This organization continues to follow the mission and values of their founder, Reverend August “Dad” Hoeger,
The Good Samaritan Society is leading the way to the future by evolving to meet the needs and desires of their staff members and communities. They incorporate technology to provide daily care needs to their residents and offer support and information for families of their members.
Since the completion of the agreement, David J. Horazdovsky, CEO of Good Samaritan Society, has joined Sanford Health’s corporate leadership team. Horazdovsky has a strong passion to serve others in need with a focus on developing innovations that improve the environments around him. , who was Sanford Health’s chief administrative officer has transitioned into the President of the Society.
There are currently 48,622 employees as the organizations combine, 44 medical centers, 482 clinics with more than 200 senior living facilities, 190,000 Sanford Health Plan members and over 1300 health care physicians. Sanford Health will continue expanding their organization and the addition of Good Samaritan Society has given them enormous value by providing a vehicle to the senior population.