Sanford Health
From Wikipedia, the free encyclopedia
Sanford Health is a nonprofit integrated health system headquartered in Sioux Falls, South Dakota with additional offices in Fargo and Bismarck North Dakota and Bemidji, Minnesota. It is one of the largest nonprofit health systems in the United States and describes itself as the largest rural health system in the country. As of 2026, Sanford Health operates 58 hospitals, 289 clinic locations and 145 senior care communities, with approximately 55,000 employees and 4,500 physicians and advanced practice providers. The organization serves more than 2 million patients across South Dakota, North Dakota, Minnesota, Iowa, Wyoming, Wisconsin and Michigan's Upper Peninsula.[5]
1894
| |
| Type | Non-profit, Private corporation |
|---|---|
| Industry | Health care |
| Founded | Sioux Falls, South Dakota, 1894 |
| Headquarters | Sioux Falls, South Dakota and Fargo, North Dakota |
Number of locations | 382[1] |
Area served | Iowa, Minnesota, Nebraska, Wisconsin, North Dakota, Oklahoma, South Dakota, California, Mexico, Ghana, China, Canada and Germany[2] |
| Key people | |
| Revenue | 2,379,772,843 United States dollar (2011)  |
| Total assets | 1,577,600,190 United States dollar (2011) |
Number of employees | 47,000+ (2021)[1] |
| Website | www |
| Footnotes Key People[4] | |
Sanford Health traces its origins to the opening of Sioux Falls Hospital in 1894. The organization subsequently became Sioux Falls Lutheran Hospital, Sioux Valley Hospital and later Sioux Valley Health System before adopting the Sanford Health name in 2007 following a $400 million philanthropic commitment from South Dakota businessman T. Denny Sanford.[6]
The system expanded substantially through mergers and affiliations with health organizations across the Upper Midwest. Major combinations included MeritCare Health System in 2009, North Country Health Services in Bemidji, Minnesota, in 2011, Medcenter One in Bismarck, North Dakota, in 2012, the Evangelical Lutheran Good Samaritan Society in 2019, Black Hills Surgical Hospital and affiliated organizations in western South Dakota in 2024, Marshfield Clinic Health System in 2025 and North Memorial Health in Minnesota in 2026.[6][7][8][9]
History
Early history
Sanford Health's institutional history begins in Sioux Falls, South Dakota, in the late 19th century. In 1893, local physicians, clergy and community members began organizing a hospital for the growing city. The following year, Sioux Falls Hospital opened in a rented house known as the Seney House. It was the first hospital in Sioux Falls.[6]
The hospital moved to a larger facility in 1898 and was renamed Sioux Falls Lutheran Hospital in 1900. In 1926, following a merger with the Bethany Association, the organization became known as Sioux Valley Hospital Association. A new six-story Sioux Valley Hospital opened in 1930 and became the principal hospital serving Sioux Falls and the surrounding region.[6]
During the 20th century, Sioux Valley expanded from a single community hospital into a regional health system. The organization developed specialized services, expanded physician practices and clinics, established medical transportation services and developed relationships with communities throughout South Dakota and neighboring states. In 1976, Sioux Valley began intensive air medical transportation, becoming an important component of emergency care in the rural Upper Midwest.[6]
In 1997, Sioux Valley Hospitals & Health System was formally established. Kelby Krabbenhoft became president and chief executive officer, beginning a period of rapid expansion that would eventually transform Sioux Valley from a regional hospital organization into a multistate health system.[6]
The Sanford name
South Dakota businessman T. Denny Sanford became an increasingly important benefactor of Sioux Valley during the 2000s. His initial major contribution was a $16 million gift in 2004 to help establish a children's hospital in Sioux Falls. Sanford subsequently contributed to medical education and research initiatives.[10]
In 2007, Sanford committed $400 million to Sioux Valley Hospitals & Health System. At the time, the gift was described by Sanford Health as the largest philanthropic gift ever made to a healthcare organization. The organization subsequently changed its name to Sanford Health in recognition of Sanford's contribution and his vision for expanding healthcare, medical research and education.[11]
Sanford completed the $400 million commitment in April 2009, more than five years ahead of the original schedule.[12]
Expansion through mergers
MeritCare
On November 2, 2009, Sanford Health and MeritCare Health System of Fargo, North Dakota, completed a merger. Both organizations had roots in Lutheran healthcare institutions in the Dakotas and had developed extensive hospital and physician networks.
The merger created one of the largest rural nonprofit health systems in the United States, combining the Sioux Falls and Fargo healthcare markets and expanding Sanford's presence throughout North Dakota and Minnesota.[13]
In July 2010, the combined organization adopted Sanford Health as its unified name and branding.[14]
North Country Health Services
In March 2011, Sanford Health completed a merger with North Country Health Services, headquartered in Bemidji, Minnesota. The combination established Sanford's presence in north-central Minnesota and resulted in the creation of Sanford Bemidji.[6]
The merger continued Sanford's strategy of building a regional network capable of providing both primary and specialty care in rural communities.
Medcenter One
In July 2012, Sanford Health merged with Medcenter One Health System of Bismarck, North Dakota. Medcenter One operated a hospital, clinics, long-term care facilities and other healthcare services in central and western North Dakota.
Following the merger, the organization became Sanford Health's Bismarck region, with the primary hospital eventually becoming Sanford Medical Center Bismarck. Sanford initially pledged to invest $200 million in the Bismarck-Mandan region and surrounding communities over a ten-year period; Sanford later reported that it invested approximately $300 million.[15]
The Evangelical Lutheran Good Samaritan Society
In 2018, Sanford Health and the Evangelical Lutheran Good Samaritan Society, another Sioux Falls-based nonprofit organization, agreed to combine their operations. The affiliation was completed on January 1, 2019.
The combination expanded Sanford's operations into senior living, skilled nursing, rehabilitation and other services across the United States. The combined organization employed nearly 50,000 people at the time of the transaction.[7]
Black Hills Surgical Hospital
In November 2024, Sanford Health announced an agreement with Black Hills Orthopedic and Spine Center and Black Hills Surgical Hospital to combine their operations with Sanford Health. The transaction included the surgical hospital, clinics, urgent care locations and the Black Hills Surgery Center in Gillette, Wyoming.
The organizations became part of Sanford Health, expanding Sanford's presence in western South Dakota and eastern Wyoming. The transaction became effective in November 2024.[16]
Marshfield Clinic Health System
In January 2025, Sanford Health completed its merger with Marshfield Clinic Health System of Marshfield, Wisconsin. The transaction expanded Sanford Health into Wisconsin and Michigan's Upper Peninsula and created a combined nonprofit health system with dozens of hospitals, thousands of physicians and two integrated health plans.[8]
North Memorial Health
In May 2026, Sanford Health and North Memorial Health announced a definitive agreement to combine the organizations into a single nonprofit health system. The proposed combination included a commitment by Sanford to invest more than $600 million in North Memorial's Minnesota facilities, including Robbinsdale Hospital and Maple Grove Hospital.[17]
The merger was completed on September 1, 2026, with North Memorial Health becoming part of Sanford Health. Robbinsdale Hospital was retained as a Level I trauma center, and Sanford committed to significant investments in the Minnesota healthcare system.[9]
Proposed and failed mergers
Sanford Health has pursued several large-scale combinations that ultimately did not occur.
UnityPoint Health
In June 2019, Sanford Health and UnityPoint Health, headquartered in Des Moines, Iowa, announced that they had signed a letter of intent to explore combining the two organizations. The proposed transaction would have created one of the largest nonprofit health systems in the United States, with more than 80,000 employees and operations across much of the Upper Midwest.[18]
The transaction received federal regulatory clearance to proceed, but the merger was ultimately rejected by the UnityPoint board of directors in November 2019. The proposed combination therefore never became effective.[19]
Intermountain Healthcare
In October 2020, Sanford Health and Intermountain Healthcare of Utah announced an intent to merge. The proposed combination would have created a healthcare organization with approximately 70 hospitals and 89,000 employees and would have substantially expanded Sanford's geographic footprint outside the Upper Midwest.[20]
In December 2020, Sanford Health indefinitely suspended the merger discussions following the departure of longtime Sanford CEO Kelby Krabbenhoft and the appointment of Bill Gassen as chief executive officer. Sanford subsequently decided not to resume the transaction.[21]
Fairview Health Services
Sanford Health has pursued combinations with Fairview Health Services of Minnesota on multiple occasions.
In 2012, Sanford began discussions with Fairview regarding a possible combination. The proposal encountered opposition from Minnesota political leaders and University of Minnesota officials, who expressed concerns about the proposed transfer of control of a major Minnesota healthcare organization to Sanford. The discussions were indefinitely postponed in 2013.
In November 2022, Sanford and Fairview again announced plans to explore a combination. The proposed transaction would have combined the organizations under the Sanford Health name while maintaining regional operations and nonprofit status.
The second attempt was discontinued in July 2023 after the organizations determined that they could not obtain sufficient support from key Minnesota stakeholders. Sanford Health announced that it had exhausted potential pathways for completing the transaction.[22]
Philanthropy
T. Denny Sanford
Thomas Denny Sanford (1935–2026), commonly known as Denny Sanford, was an American businessman and philanthropist whose charitable giving played a major role in the development and expansion of Sanford Health.
Sanford was born in Saint Paul, Minnesota, and later became a prominent businessman in Sioux Falls, South Dakota. His wealth was derived primarily from business investments, including United National Corporation.
Sanford became associated with Sioux Valley Hospitals & Health System in the early 2000s. His first major gift to the organization came in 2004, when he provided $16 million toward construction of a children's hospital in Sioux Falls. He subsequently made additional contributions to medical education, research and clinical care.[10]
In 2007, Sanford made his most consequential contribution to the organization, pledging $400 million to Sioux Valley Hospitals & Health System. The gift was described at the time as the largest philanthropic contribution ever made to a healthcare organization. The organization adopted the Sanford Health name in recognition of the gift and Sanford's role in its development.[11]
Sanford fulfilled the entire $400 million pledge by April 2009, substantially ahead of schedule.[12]
Healthcare philanthropy
Sanford's philanthropy extended well beyond the original $400 million commitment. His gifts supported children's healthcare, medical research, genomics, diabetes research, breast cancer research, medical education, virtual care and other healthcare initiatives.
In 2011, Sanford provided $100 million to establish the Edith Sanford Breast Center initiative. In 2014, he provided a $125 million gift associated with the development of Sanford Imagenetics, an initiative combining genomic information with clinical care.[6]
In 2021, Sanford committed $350 million to Sanford Health's virtual care initiative, intended to expand access to medical specialists and healthcare services for rural and underserved populations.[10]
In 2025, Sanford committed $300 million toward the development of Sanford Black Hills Medical Center in Rapid City, South Dakota. The proposed medical center was designed to expand specialty care in the Black Hills region, including emergency medicine, intensive care, oncology, women's health and children's services.[10]
Sanford Health has described Sanford's cumulative philanthropy as transformative to the organization's development and its research and clinical initiatives. His gifts were associated with projects ranging from children's hospitals and cancer care to medical research, genomics and rural healthcare access.[10]
Legacy
Denny Sanford's philanthropy made him one of the most prominent individual donors to healthcare organizations in the United States. His $400 million 2007 commitment to Sanford Health was described by the organization as the largest gift ever made to a healthcare organization at the time.[11]
His philanthropy also had a significant effect on the geographic and institutional development of Sanford Health. The organization's expansion from a Sioux Falls-based hospital system into a multistate healthcare network occurred during the period in which Sanford provided major philanthropic support.
Sanford died in 2026 at the age of 90. Sanford Health subsequently established a formal remembrance of his life and legacy, describing his philanthropy as having had an enduring effect on healthcare, medical research and the communities served by the organization.[10]
Sanford's personal philanthropic philosophy was frequently summarized by his statement, "Aspire to inspire before you expire."[10]
See also
- Sanford USD Medical Center
- Sanford Children's Hospital
- Sanford School of Medicine
- Sanford Research
- Good Samaritan Society
- Marshfield Clinic Health System
- North Memorial Health
- T. Denny Sanford
- Healthcare in South Dakota