West Des Moines-based UnityPoint Health and Sanford Health today announced they have signed a letter of intent to pursue a merger, in a deal that would create one of the nation’s largest nonprofit health systems. 

Based in Sioux Falls, S.D., Sanford Health is one of the largest health systems in the United States, operating 44 hospitals with 1,400 physicians and more than 200 Good Samaritan Society senior care locations in 26 states and nine countries. 

UnityPoint Health currently operates more than 280 clinics and 32 hospitals and home care services in nine regions throughout Iowa, western Illinois and southern Wisconsin, with more than 30,000 employees. 

A new governing board would be established for the new company, made up of representatives from both legacy organizations, plus additional unaffiliated board members with relevant national industry experience and expertise. UnityPoint Health would recommend the inaugural board chair.

Under the proposed agreement, both organizations would continue to operate their respective fully integrated medical groups and maintain long-standing relationships with independent physicians, hospitals and other health care partners. 

The decision follows considerable exploration between leadership teams from each organization, the health systems said in a news release. 

“Sanford and UnityPoint are two successful systems intent on controlling our own destiny,” said Kelby Krabbenhoft, president and CEO of Sanford Health. “We believe that in the very near future, fully integrated health systems will drive greater value through affordable options for high-quality health care to patients, governments and employers. The combination of Sanford and UnityPoint will help both organizations better meet this need, creating a new system positioned for continued growth across a broad geography.” 

The combined company would have more than $11 billion in annual operating revenue, which would make it among the top 15 largest nonprofit U.S. health systems. 

The new company would be led by Kelby Krabbenhoft as president and CEO. Kevin Vermeer, the president and CEO of UnityPoint Health, would become senior executive vice president of the combined health system.  

“Our organizations share a deep commitment to exceptional patient care and a vision for transforming and sustaining health care in our communities,” Vermeer said in a statement. “We are approaching our discussions very purposefully, with a clear and common vision for success. First and foremost, our focus is on people. Working together, we will find new ways to broaden access to care – beyond the traditional settings – and take greater responsibility for the health of the populations we serve.” 

The new organization would employ more than 83,000 staff members and 2,600 physicians and carry out operations in 26 states and nine countries, including hospitals, clinics, health plans and networks, post-acute care, research, innovation, and other lines of business.

The transaction is subject to various regulatory reviews. Timelines are still fluid, but leaders say they intend for the transaction to be completed, pending regulatory reviews, by the end of this year. Ten years ago, Sanford Health merged with North Dakota-based MeritCare, spurred in part by nearly $1 billion in gifts from South Dakota banker and philanthropist T. Denny Sanford, the Argus Leader reported. Sanford Health last year merged with the Good Samaritan Society, which provides senior care in 26 states and nine countries.

More information about the proposed merger in a letter from UnityPoint CEO Kevin Vermeer and a list of frequently asked questions can be found by clicking here.