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Analysis

Sanford Health to Acquire Good Samaritan

By John Commins  
   June 27, 2018

The deal gives Sanford Health access to senior care services in 24 states, and provides Good Samaritan with a buffer against lower revenues and a declining patient census.

Sanford Health and senior care services provider The Evangelical Lutheran Good Samaritan Society will merge to form a $6 billion company with 47,000 employees nationwide, the two Sioux Falls, South Dakota-based not-for-profit providers announced.

Financial terms were not disclosed for the deal, which was made public this week shortly after the membership at Good Samaritan voted their approval.

"By bringing the expertise of the professionals at the Society together with the healthcare experts at Sanford, not only will there be benefits for those we serve but also the organizations are stronger together," David J. Horazdovsky, president and CEO of the Good Samaritan Society, said in a media release.

Horazdovsky will remain as president of Good Samaritan after the acquisition is completed.

Sanford CEO and President Kelby Krabbenhoft called the deal "forward-thinking" and said it will "become a national model to serve communities with exceptional care and value through the full spectrum of one's life."

Good Samaritan has 19,000 employees in 24 states providing senior care services. Sanford has 28,000 employees in nine states that provide clinic, hospital and health insurance services.  

The Good Samaritan acquisition expands Sanford's fast-growing footprint into 200 senior care services locations across the nation. For Good Samaritan, the deal provides some relief from a declining patient census and budget deficits.

Good Samaritan is the latest acquisition in an aggressive growth strategy pursued by Sanford Health, that has also caught the attention of state and federal regulators.

In December, a federal magistrate judge in North Dakota issued a preliminary injunction blocking the Sanford's proposed acquisition of Mid Dakota Clinic.

The suit was brought by the North Dakota Attorney General's Office and the Federal Trade Commission, which contend that the acquisition would adversely affect competition in the Bismarck service area and increase the cost of healthcare for consumers.  

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


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