Hospitals

Mayo Clinic to acquire regional hospital from Fairview Health Services

Mayo Clinic announced that it signed a tentative agreement by which Fairview Red Wing Health Services, part of Fairview Health Services, will become part of the Mayo Clinic Health System. A Fairview Red Wing spokeswoman declined to discuss the terms of the acquisition. Starting July 1, Fairview Red Wing will come under Mayo Clinic Health […]

Mayo Clinic announced that it signed a tentative agreement by which Fairview Red Wing Health Services, part of Fairview Health Services, will become part of the Mayo Clinic Health System.

A Fairview Red Wing spokeswoman declined to discuss the terms of the acquisition. Starting July 1, Fairview Red Wing will come under Mayo Clinic Health System’s operations.

There has been a growing trend of smaller hospitals becoming part of or partnering with large providers to manage rising costs and as a natural consequence of the rise of accountable care organizations. But this transaction appears to be slightly different in that Fairview Red Wing is switching allegiances from one large provider to another.

Fairview Red Wing Health Services operates a 50-bed hospital in Red Wing with outreach clinics in Zumbrota, Minnesota and Ellsworth, Wisconsin. In addition, it also operates Fairview Red Wing Home Care and Hospice and The Downtown Plaza senior apartments.

The CEO of Fairview Red Wing, Scott Wordelman, will leave the organization following the acquisition. Tom Witt, CEO at Mayo Clinic Health System sites in Cannon Falls and Lake City, will assume that responsibility.

“Fairview’s focus in these discussions has been to identify the best way to provide comprehensive care to the communities surrounding Red Wing and we believe that aligning our integrated regional healthcare system with Mayo Clinic Health System will best achieve that goal,” Wordelman said in a news release.

A spokeswoman reiterated that the board felt that going with a regional healthcare system would best serve the population of 60,000 that it serves in Minnesota and Wisconsin. She added that the decision to go with Mayo was unrelated to the media scrutiny that Fairview has withstood because of its relationship with Accretive Health and the tactics it pursued at Fairview to collect medical debt from patients.

“The board began discussing options two years ago,” said Marcy Dowse, a Fairview Red Wing spokeswoman.

A Fairview Health Services spokesman did not directly address why the regional health system in Red Wing is leaving Fairview for Mayo.

“All three organizations (Fairview, Fairview Red Wing Health Services and Mayo Clinic Health System) place the health care needs of our patients, their families and our communities as our highest priorities,” said Ryan Davenport, in an email.