Sanford Health of Northern Minnesota has dropped out of merger discussions with Fairview Health Services, Inc. Sanford Health took the decision after a public hearing on April 7, 2013 at which Attorney General Lori Swanson questioned whether the merger. He questioned if the merger would wrongly export beyond state lines both charitable assets and control of university teaching hospitals owned by Fairview. Kelby Krabbenhoft, Chief Executive Officer of Sanford Health said: "Sanford Health has a philosophical policy of 'only going where we are invited'. It seems as though the incredibly positive beginnings to discussions of the merger ... has turned into a situation that finds us being unwelcome by some interested parties and key stakeholders of our proposed merger partner." Fairview’s interim Chief Executive Officer, Charles Mooty said: "We respect Sanford's decision and our board's current assessment of a Sanford partnership will stop. We understand why they would choose to step back at this time, but the news comes as a disappointment."

Fairview Health Services, Inc. and Sanford Health of Northern Minnesota are in preliminary merger talks. Sanford Health’s Chief Executive Officer, Kelby Krabbenhoft described the situation as "discussions and exploratory review of each organization." He added: "It is an unfortunate description of these timely and well-intended talks as some kind of 'takeover' or acquisition." Fairview and Sanford are about the same size, with $3 billion in net revenues. He further stated: "While very early in the process of learning about each other, it seems there is a lot of commonality in values and priorities between the two systems. We find ourselves intrigued by the possibilities and potential of our talks, and yet we are comfortable with the notion of a careful and reasoned process to learn and think of what might be. With no overlap in service areas and no historic relationships to confuse the discussion, it seems like a perfect moment in time to pursue these talks."

Fairview Health Services, Inc. decided not to renew the contract of CEO Mark Eustis. Eustis is scheduled to retire when his current five-year contract expires at the end of July. Starting Aug. 1, Chuck Mooty will serve as interim CEO until a replacement is found. Mooty is the former chief executive officer of International Dairy Queen, which has its corporate headquarters in Edina.