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As I read Dr. Peter H. Kelly's piece on the Fairview/Sanford merger proposal ("What's really at stake with the Fairview and Sanford merger," Opinion Exchange, Feb. 20), one thing that struck me — as it has previously when reading other material on this subject — is exactly why Sanford is (apparently) in so much better financial condition than Fairview. According to Kelly and others, Sanford has invested many millions in rural health care systems in the Dakotas and parts of Minnesota such as Bemidji, and yet it is financially strong enough to be able to prop up Fairview after the merger would be complete — including the continuation of Fairview's yearly support of the University of Minnesota Medical School. In comparison, the Fairview system has lost hundreds of millions in recent years — and without the merger, the losses are projected to continue, apparently with no end in sight.
Why such a stark difference between the fortunes of these two large health care organizations? Is it mostly due to the donations of billionaire Denny Sanford, which Fairview lacks? (And if so, then whenever Denny Sanford's money is used up, does that mean the merged Sanford/Fairview would start running big deficits?) Is the general business plan of Sanford that great, and/or the business plan of Fairview that poor? Or is Sanford operated that much better than Fairview? Certainly the median income of Fairview's customer base must be higher than that of Sanford's, given that Minnesota's median household income ranks above both South Dakota and North Dakota.
I think Fairview's bosses should be required to give believable answers to some of these questions before the merger would be allowed to continue, and before Minnesotans would be expected to turn over a good-sized chunk of their health care business to a South Dakota-based company — including quite a bit of the funding for the facility that trains a heavy majority of the doctors who serve Minnesota.
John Ewan, Falcon Heights
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We appreciate the opportunity to respond to the opinion piece by Dr. Peter H. Kelly. We feel compelled to address several points. First, Kelly expresses surprise that the university is expressing opposition to the planned Sanford acquisition of Fairview as it is currently presented. Yet the proposed plan does not have a commitment to the university's mission in this Sanford-led organization beyond, "We will figure it out later." Additionally, it must be remembered that, despite an existing joint agreement between Fairview and University of Minnesota physicians, Fairview engaged with Sanford regarding an acquisition for several months and drafted a letter of intent prior to the university having any knowledge of the discussions. This was an unfortunate decision that resulted in loss of trust.