Issue link: https://beckershealthcare.uberflip.com/i/1034012
50 CFO / FINANCE Sanford CEO aims to announce merger plans with $1B Chicago system by year's end By Alyssa Rege K elby Krabbenhoft, president and CEO of Sioux Falls, S.D.-based Sanford Health, said the health system is on track to expand into several areas — including Chicago and Minnesota — and aims to announce certain merger plans by the end of 2018, according to SiouxFalls.Business. Mr. Krabbenhoft told the publication he met with leaders of a Chicago-based health system in Au- gust. While he has not revealed any details about the proposed deal, Mr. Krabbenhoft told Sioux- Falls.Business the $1 billion system comprises "very good friends and allies," and that Sanford's board is on track to vote to move the merger for- ward before the end of the year. At the time of the report, he noted the conversa- tions with various organizations in Minnesota were ongoing. Mr. Krabbenhoft was expected to meet with the CEO of Bloomington, Minn.-based Health Partners in early September. The decision to expedite the merger between Sanford and the Evangelical Lutheran Good Samaritan Society has also brought Sanford in touch with organizations in other markets, including Phoenix, Orlando and Rapid City, S.D. Mr. Krabben- hoft said he met with the CEO of Rapid City Region- al Hospital in early August and hosted a group of Rapid City community leaders Aug. 28 to provide them with more information on Sanford's research, affiliated insurance arm and children's hospital. Mr. Krabbenhoft disputed the growing chorus of rumors claiming he plans to step down from his po- sition. He said contrary to such speculations, he has committed to retiring from Sanford Health in 2023, but has discussed staying longer. "My board has had discussions about wanting me to stay beyond that because I'm healthy and hav- ing fun, but at this point I'm staying with my plan," he told SiouxFalls.Business. Sanford Health Board of Trustees Chairman Mark Paulson, MD, also issued a statement to the publi- cation in support of Mr. Krabbenhoft. "As he has demonstrated over the past 22 years at Sanford, Kelby is a visionary leader positioning Sanford as a world-class healthcare system. He has the full support and confidence of the board. I look forward to the future with him at the helm," Dr. Paulson said. n Brown University joins Partners, Care New England deal By Alyssa Rege B oston-based Partners HealthCare, Care New England and Brown University, both in Providence, R.I., signed a memoran- dum of understanding to formalize their commitment to im- proving care and bringing biomedical innovation to Rhode Island. Brown University officials previously voiced their concern over Partners' proposed acquisition of Care New England. After the organizations announced the deal in January, the university reportedly approached Providence-based Lifespan to form a competing bid. However, Lifespan rejected the deal. Partners and Care New England formalized their acquisition agreement in May. Under the memorandum, the Warren Alpert Medical School at Brown University will serve as the primary academic research and teaching institution for the combined organization. The partnership will also aim to enhance the quality of medical education for stu- dents and explore the potential creation of a new medical research institute in Providence. Brown University President Christina Paxson, PhD, will be added to Care New England's board of directors, while Jack Elias, MD, senior vice president for health affairs and dean of medicine and biologi- cal sciences at Brown's medical school, will serve on any academic or research subcommittee of the board. Along with their partnership with Brown, Partners and Care New England will continue negotiations with Lifespan. The organiza- tions approached Lifespan about a potential affiliation in February. The terms of the final agreement between the three organizations were still in the works as of Aug. 7. n Tenet exits UK market after 3 years By Alyssa Rege D allas-based Tenet Healthcare completed the sale of London-based Aspen Healthcare to NMC Healthcare, which is based in the United Arab Emirates. Tenet acquired Aspen Healthcare from private equity firm Welsh, Carson, Anderson & Stowe in June 2015 for about $214 million. At the time, Tenet said the deal provided the hospital operator with an attractive foothold in the U.K. healthcare market. Aspen Healthcare operates nine healthcare facilities. With the completed sale, Tenet no longer has operations in the U.K. e Telegraph reported Aspen Healthcare, which NMC Healthcare reported- ly purchased for €10 million (roughly $11.4 million), represents the health system's first deal in the U.K. healthcare market. n