Boards of directors at the Fairview and HealthEast hospital systems announced Tuesday they have approved a merger to create one of the largest health systems in Minnesota, with closing expected for June 1.
A spokeswoman for Minneapolis-based Fairview Health Services said the Federal Trade Commission's review window for the merger has closed, and no concerns were raised.
"We also have responded to inquiries from the Minnesota Attorney General and do not expect any issues there," Fairview spokeswoman Cindy Fruitrail said in a statement.
In 2015, Fairview and St. Paul-based HealthEast were the third and fifth largest health systems in the state in terms of available hospital beds, according to figures from the Minnesota Department of Health. Had they been combined at the time, the bed count tally for Fairview-HealthEast would have exceeded that for Minneapolis-based Allina Health System, which topped the list in 2015 with 1,815 available beds.
"Bringing Fairview and HealthEast together gives us the opportunity to create a world-class health system committed to serving our communities and the region," Fairview CEO James Hereford said in a statement.
Hereford is scheduled to serve as CEO of the combined system, while HealthEast CEO Kathryn Correia would become chief administrative officer. The system will be governed by the Fairview board, with three new members from HealthEast.
Fairview operates the University of Minnesota Medical Center in Minneapolis plus six community hospitals and roughly 100 primary and specialty clinics. With 25,000 employees, Fairview also owns a growing pharmacy business as well as long-term care centers.
In 2016, Fairview posted an operating profit of $130.6 million on $4.36 billion in revenue.
HealthEast employs 7,500 people and operates three acute care hospitals — St. John's Hospital in Maplewood, St. Joseph's Hospital in St. Paul and Woodwinds Health Campus in Woodbury. The system includes 14 clinics.
Christopher Snowbeck 612-673-4744
Twitter: @chrissnowbeck
