Dakota Health Systems' Merger Would Create One of Nation's Largest Integrated Systems

The letter of intent agreement came after a study by Deloitte Consulting, LLP, that determined an affiliation would:

• Create growth opportunities that would facilitate the development of regional centers of excellence and facilitate the development of health services not currently offered by either organization.


• Provide a stronger financial position to pursue strategic initiatives through economies of scale and enhanced access to capital.


• Enhance research opportunities, the ability to collaborate on medical education initiatives, such as training centers, fellowships, and residencies, as well as improve recruitment of physicians and other clinical personnel.


• Accelerate expansion of health plan products into a broader market area, which would help mitigate the out-migration of patients to other markets.

"It would have the ability to increase the level and efficiency of healthcare delivery for a very broad population in large contiguous service areas and expand research activities and education programs for further health improvements," says Bruce Morgan, a principal at Deloitte Consulting, LLP.

MeritCare is North Dakota's largest health system and the state's largest private employer, with about 50 regional clinics in North Dakota and Northwest Minnesota.

Sanford Health includes Sanford USD Medical Center and a network of community hospitals and clinics in South Dakota, Southwest Minnesota, Northwest Iowa, and Northeast Nebraska.