Sunday's hearing on the proposed Sanford Health/Fairview Health Services merger lasted more than two hours, right up to the point where state Capitol staffers were likely getting anxious about closing the historic building on time.
The tense hearing covered a lot of ground. But Minnesota Attorney General Lori Swanson summed our sentiments perfectly when she said at the hearing's close that we've "barely scratched the surface" when it comes to evaluating the merits of a proposed merger between the South Dakota-based Sanford and the metro's Fairview hospitals and clinics, which includes the University of Minnesota's teaching hospital.
News of merger talks surfaced publicly about two weeks ago, when Swanson called for public hearings to weigh the proposed deal. Since then, a Jan. 28 counteroffer made by the U to acquire the Fairview system has also been made public.
The U sold its medical center to Fairview in 1997 — an era when some academic medical centers sold or spun off weak-performing hospitals. Many academic medical centers have since reacquired these facilities.
Swanson deserves credit for putting a spotlight on the under-the-radar talks. One question deserving of a high-profile answer at the next hearing, slated for April 21: When did any of the three key players — Sanford, Fairview, the U — intend to publicly disclose that control of the Twin Cities' second-largest hospital system was up for grabs?
Fairview's nonprofit status — its $1.2 billion net worth was nurtured for decades with tax exemptions, charitable donations and volunteerism — means the public is a stakeholder in the proposed transaction.
On Monday, two Minnesota lawmakers introduced legislation that would block control of the U's teaching hospital by an out-of-state organization. While we share their concern about control of this world-class medical center, it's unclear whether such a bill is needed.
The U sold the medical center to Fairview in 1997, and some farsighted language in the 16-year-old affiliation agreement appears to require the university's consent in the event of a sale, disposition or transfer of hospital assets.
