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Sanford Hospital Jackson May Fully Integrate with Sanford Health

Proposal Would Change Hospital from Leased to Owned Agreement



(Sioux Falls, SD and Jackson, MN) Upon the conclusion of a series of long-term planning meetings with Jackson City Council and Community Advisory Board representatives, Sanford Health has submitted a proposal to the city of Jackson to purchase the facility. If approved by the Jackson City Council, Sanford Hospital Jackson would transition from a facility leased by Sanford Health to an owned facility. This would fully integrate Sanford Hospital Jackson with Sanford Health.

"Rural facilities face many challenges including the recruitment and retention of physicians, technology cost and access, increased regulations and reimbursement reductions," said Dennis Finstad, Board Chair, Sanford Hospital Jackson. "Sanford has demonstrated its commitment over the years to increasing healthcare access in Jackson. Fully integrating with a larger health system such as Sanford Health helps secure the future of healthcare for the Jackson community."

The Sanford Health proposal includes many construction projects for Sanford Hospital Jackson. Construction of the first phase would begin in March 2010. This phase includes surgery renovation, creation of a single and patient centered admission area for the clinic and hospital and upgrades to radiology and imaging including a new permanent CT scanner. The second phase would begin March 2011 and include a new laboratory, renovated emergency room and outpatient and inpatient room remodeling.

Jackson Mayor Mitch Jasper added, "I have been thoroughly impressed with Sanford and its willingness to work together with us in order to strengthen healthcare for the Jackson community. This new agreement will include a significant capital investment by Sanford Health for needed improvements at the hospital. These improvements would not be possible without Sanford's assistance."

"Sanford has had a strong relationship with the Jackson hospital since 1997, and this is a progression of that relationship," stated Ed Weiland, President, Sanford Health Network. "Sanford believes healthcare is a community asset, and as the area continues to grow, we expect the need for healthcare services to increase. We look forward to the future of healthcare for the Jackson community."

The approval process is expected to be completed as early as September 2009. This begins a transition process which includes two construction phases. Once those construction phases are completed, likely by December 2011, Sanford Health will purchase the facilities from the city.