The area’s biggest name in health care just got smaller as Sanford Health & MeritCare simplified its name to Sanford Health.

The name change, celebrated Tuesday, is intended to help unify an organization with $2.25 billion in annual revenues and 20,000 employees serving parts of five states.

The health system’s namesake benefactor, Denny Sanford, was on hand for the occasion, which introduced a new sign at the former MeritCare Medical Center in Fargo, with blue replacing magenta as the signature color.

“This is an honor, truly,” Sanford said in remarks that recalled his younger days working for two summers on a railroad signal crew in North Dakota.

Sanford, who donated $400 million in 2007 to what was the Sioux Valley Health System based in Sioux Falls, S.D., said last November’s merger of the two health systems has produced a single organization with a national reputation and a global reach.

“Combination of these two organizations I look at as one plus one equals at least three,” he told a crowd gathered on the north lawn of the downtown medical complex, now called Sanford Medical Center Fargo.

Recalling the day the merger was completed last fall, the wealthy businessman-turned-philanthropist said: “That was the proudest day of my life. Today I am doubly proud.”

Kelby Krabbenhoft, Sanford Health’s chief executive, dropped hints of big things to come.

In addition to the planned $300 million medical center near Interstate 94 in southwest Fargo and the recently announced fitness and performance athletics centers, more initiatives appear imminent:

- Sanford’s Roger Maris Cancer Center, which has outgrown its space, will become a name in cancer treatment beyond Fargo. The center is named after the late Roger Maris, a Fargo native and former New York Yankees homerun slugger.

“The almost legendary reputation of not only the man but the cancer center is very meaningful to this region,” Krabbenhoft said. He added: “Mr. Sanford has ideas about cancer and the potential of something new that we’re working on behind the scenes.”

- Sanford will strengthen ties with the University of North Dakota, among academic partnerships that also will include North Dakota State University and Concordia College.

In Sioux Falls, the Sanford/USD Medical Center has a partnership with the University of South Dakota School of Medicine.

Later, Dennis Millirons, president of Sanford Medical Center Fargo, issued a statement about developing a “shared vision for the future” with UND, noting it already includes 32 residents and 28 medical students in the center’s teaching programs.

“That vision will be based on traditions, and include investments that will enhance the mission of the university, and our relationship,” Millirons said.

- A partnership with Orthopaedic Associates appears to be nearing agreement, but any announcement would come from Orthopaedic Associates. A merger would create a group of about 50 orthopedic surgeons.

Sanford expects to spend $3 million changing signs over the next two years. Since the merger, the health system has added 500 employees.

Dr. Roger Gilbertson, the retired chief executive of MeritCare before the merger, attended Tuesday’s festivities. Gilbertson had been instrumental in the merger in the 1990s of St. Luke’s Hospitals and Fargo Clinic, which resulted in the formation of MeritCare Health System.

“I think the name change is a critical thing for any two organizations coming together,” he said. “I think the Sanford name is appropriate.”

 By: Patrick Springer, INFORUM

After months of discussion and community input, West Fargo’s chamber of commerce will officially join the Fargo-Moorhead chamber on Sept. 1.

Both chambers offered their members a chance to vote recently on whether the merger should take place.

The results showed 98 percent of ballots cast in Fargo-Moorhead were in favor of the merger, as were 72 percent of ballots cast in West Fargo, Fargo-Moorhead Chamber President and CEO Craig Whitney said Wednesday.

The chambers would only release the vote percentages, not the specific vote results, Whitney said.

The combined chamber will have about 2,000 members, since 176 businesses currently are members of both the West Fargo and Fargo-Moorhead chambers.

A unified chamber – under the temporary name of the “Fargo-Moorhead-West Fargo Chamber of Commerce” – means stronger regional representation for area businesses, but it also means West Fargo’s chamber businesses face some changes under the new arrangement.

West Fargo has historically maintained an independent spirit, with a strong emphasis on having its own identity within the Red River Valley region – and that’s a point that played heavily in community discussions about the merger.

“The independent theme of West Fargo rang very true in some of the comments from some of our membership, but everybody still understands that this is the Red River Valley,” said Bernie Dardis, board treasurer of the West Fargo chamber and a Fargo business owner. “It’s about what’s best for the people – what’s best for our communities, what’s best for our memberships.”

Although some staple events of the West Fargo chamber – such as West Fest – will no longer be sponsored by the combined chamber after 2010, officials said West Fargo’s identity won’t be lost.

“They’ll still have their own identity to a point, but we’re going to be a unified region,” The West Fargo chamber’s board chairwoman Kathy Lewin said, adding that after 2010, West Fest likely will be sponsored by another organization within the city.

Meanwhile, annual dues also will change once the chambers merge – and at least for members of only the West Fargo chamber, that will mean higher costs.

“Their dues structure was slightly lower than ours in some cases, and they will over a couple of years be phased in to our dues level,” Whitney said, adding that the chamber will also talk in early 2011 about updating the Fargo-Moorhead chamber’s existing dues structure for its members.

The chambers wouldn’t release specific numbers on how much they charge for dues.

Meanwhile, the Fargo-Moorhead chamber’s board of directors will be expanded from 12 to 16 members after Sept. 1 to include representation of four West Fargo chamber members.

When Whitney was asked how the chamber would address the 28 percent of West Fargo chamber members that opposed the merger, he replied: “Well, I think 72 percent is very overwhelming.”

“It’s very clear that the members and the members of the business community here thought that this was the right thing to do,” he said. “And, moving forward, it really is what is best for the region.”

 By: Kristen Daum, INFORUM

When Sanford Health of Sioux Falls, S.D., and MeritCare of Fargo began flirting with a merger, not everyone in Fargo was pleased. There was an organized effort – led by respected community leaders – to scuttle the plan. Legitimate fears arose that a merged organization would be dominated by the South Dakota health system at the expense of the identity and local focus of the North Dakota health care center.

That was then. This week it can be argued that the identity concern had some merit, although not much. The MeritCare name has been retired. The new regional system will be Sanford Health, with the downtown Fargo campus of MeritCare dubbed Sanford Medical Center Fargo. The maroon-on-white MeritCare logo is being replaced by Sanford’s name in white on a field of blue.

What’s in a name? It depends on one’s perspective. Frankly, there are people in the Fargo-Moorhead region who are still in a snit over the change from St. Luke’s to MeritCare. Never will get over it. But with the change to Sanford Health, it appears good things will happen in a relatively short time.

Sanford’s executives made promises and commitments during merger talks. If some of the rhetoric came off like carrots to appease merger opponents, the follow-up post-merger is adding substance to promises. For example:

• Look for expansion of Sanford’s Roger Maris Cancer Center in Fargo, with the aim of the center becoming a name in cancer treatment far beyond Fargo by virtue of its good work and identity with the baseball great.
• Ties with the University of North Dakota, North Dakota State University and Concordia College will be strengthened for expanded partnerships in medical education.
• A merger with world-class Orthopaedic Associates of Fargo could be announced soon.
• A $300 million medical center off Interstate 94 in southwest Fargo is in the planning stages.
• A fitness and athletic performance center in the Urban Plains development was announced a few weeks ago.

Many of the projects and proposals are initiatives made possible because a bigger, financially secure Sanford Health, merged with MeritCare, can swing such huge investments. One result will be a comprehensive regional health center of national significance that serves patients in parts of five states.

Sanford Health is off to a good start in Fargo, having completed the merger in record time. And even those who had doubts about the merger should be heartened by the unequivocal restatement of commitment to patient care, medical education and facilities expansion.

According to a report by the North Dakota State Data Center, changing population demographics in Cass and Clay counties will be strong indicators of needed policy adjustments in the future.

Some highlights of the report, which was presented to the Clay County Commission on Tuesday, include:

- Making up about 6 percent of both the male female populations, 20- to 24-year-olds are the largest age group in the area.

- The 85 and older population increased by 32 percent from 2000 to 2008, the largest increase of any age group.

- Of people receiving legal residence in the F-M area from 2005 to 2009, the percentage of Europeans decreased from 37 percent to 10 percent. Among the same group, the percentage of Africans increased from 18 percent to 48 percent.

- Households of non-family members increased more than any other type of living arrangement since 2000.

Dr. Richard Rathge, the Data Center’s director, said the amount of 20-somethings in Fargo-Moorhead is “extremely important to the area’s vitality.”

One-third of the area’s workforce is under age 30, a welcome sign since towns outside of the metropolitan area are concerned with filling open positions as large percentages of their workforce retire. Rathge said only 15 percent of the F-M workforce is above age 55.

On the other end of the spectrum, the large increase in the 85-plus age group will bring its own set of issues, Rathge said.

“That’s something we’ll need to be aware of as we move forward,” he said. “Age will have a significant consequence on policy.”

A flux of immigrants to the region has also brought more diversity in ancestral backgrounds over the past five years.

In North Dakota, Canada moved out of the top spot for the number of immigrants obtaining legal residence. That now belongs to Somalia, followed by Kenya and then Canada.

Perhaps the most surprising population changes have been in living arrangements, Rathge said.

Because 77 percent of non-family households consist of one person, Rathge said this population shift and a general decrease in the number of people per household has greatly contributed to the increased building of housing in the area.

There’s also been an increase in children living with a single parent, a trend that’s reflected in some of the social indicators the Data Center compiled. Among these are area poverty rates.

While poverty has generally decreased since the 1970s, Rathge said by looking only at the overall poverty level, officials fail to consider people “who we need to assist” in specific areas where poverty has increased.

Area minority groups continue to experience a high level of poverty, but one of the largest increases in poverty since 2000 came among single mothers with children under 18, regardless of ethnic background. At a 37 percent poverty rate, single mothers are on par with the Data Center’s categories of “Black,” “American Indian” and “Hispanic Origin” for the highest poverty rates in the area.

The Data Center report also explored behavioral and health risks, including obesity and binge drinking, and Rathge discussed initiatives currently at work to combat those issues.

“We need to address the root of the problem in order to effectively address the consequence of that problem,” Rathge said.

Commissioner Jon Evert said the report will be a strong aid in pinpointing issues that will need to be addressed in the future.

“I think you’ve shown us that some of those non-mandatory things that might get cut (from the budget) are the most important,” Evert said after the presentation.

By: Emily Hartley, INFORUM

Readers can reach Forum reporter Emily Hartley at (701) 235-7311

 Economic Indicators June 2009.pdf

For additional information, please contact Tifanie Gelinske at 701.364.1900 or tgelinske@gfmedc.com.

By: Patrick Springer, INFORUM

 The Sanford “power bubble” is a 21,000-square-foot facility near the football stadium for the University of Sioux Falls in South Dakota. Special to The Forum

Sanford Health-MeritCare plans to build a new center in southwest Fargo dedicated to helping athletes boost their performance.

The center will be modeled on one built two years ago in Sioux Falls, S.D., that cost $2.5 million but will be tailored to athletic needs in the Fargo-Moorhead market, a Sanford Health-MeritCare executive said.

“We’ll customize that facility to what the needs are,” said Kevin Lampe, a Sanford Health-MeritCare vice president who oversees its orthopedic and sports medicine programs.

In a related matter, Sanford expects soon to have an agreement to provide sports medicine services for the North Dakota State University Bison, perhaps as early as this week.

Gene Taylor, NDSU’s athletic director, was traveling Friday afternoon and couldn’t be reached for comment on the talks or what the planned performance enhancement center could mean for Bison athletics.

Innovis Health has long provided team doctors and trainers for the Bison but recently announced that it would not provide those services after Wednesday in light of discussions taking place between NDSU and Sanford-MeritCare.

Through a spokeswoman, Innovis declined comment Friday on Sanford-MeritCare’s latest plans to expand its sports medicine and orthopedics services.

Demand for sports medicine services is strong in the area, given the multitude of teams fielded by NDSU, Minnesota State University Moorhead, Concordia College, and many high school programs, in addition to the area’s many serious amateur athletes, Lampe said.

The performance center will work with athletes of all skill levels. Programs will include speed strength, weight training and agility training.

Sanford Health-MeritCare is striving to develop an orthopedics and sports medicine program with a reputation that will attract athletes from around the country, he said.

Sanford’s National Institute for Athletic Health & Performance opened two years ago. It’s directed by Dr. Michael Bergeron, who is known for his research in exercise, heat stress and athletic health.

Research, in fact, will be an important part of the work done by the performance center, with athletes sometimes serving as research subjects.

Sanford Health-MeritCare – which will drop MeritCare from its name in July – plans to have a medical residency program in orthopedics in 10 or 12 years to help attract physicians specializing in orthopedics and sports medicine, Lampe said.

“You need to build the research base” to attract top specialists in the fields of orthopedics and sports medicine, he said.

Discussions between Sanford Health-MeritCare and Orthopaedic Associates, which are exploring a possible partnership, continue, Lampe said.

The performance athletics center is separate from the recently announced $12 million fitness and wellness center Sanford will build in partnership with the YMCA but also will be located at the Urban Plains development in southwest Fargo.

The new performance center got final approval last week from the health system’s local trustees and will proceed in the new fiscal year, which starts Thursday.

The exterior of the building likely will resemble the “power bubble” look of its Sioux Falls counterpart, a 21,000-square-foot facility near the football stadium for the University of Sioux Falls, although no designs have been drawn, Lampe said.

Details are being worked out in consultation with local athletic officials, but the facility’s activity areas will include artificial football turf, track lanes and a wooden basketball court floor for athletes to train on.

“I’d anticipate there’d be some hockey support we’d put in that facility,” Lampe said, noting the popularity of hockey in the Fargo-Moorhead region.

Sanford Health-MeritCare is not involved in talks for a possible indoor aquatics center or other community athletic facility, such as a soccer complex, but is interested in exploring partnerships, Lampe said.

“Our history is one of working with community groups,” he said, noting as an example that Sanford donated land in Sioux Falls for a junior football facility now under construction and has a sponsorship supporting youth soccer in that city.

The report, titled “Enterprising States: Creating Jobs, Economic Development and Prosperity in Challenging Times,” combines metrics for each economic development policy area to identify the top overall growth performer.

The study states that, “While North Dakota’s low unemployment and recession resistance is often attributed to healthy agriculture and energy sectors, its construction and manufacturing sectors are relatively healthy and the state has seen 42 percent job growth in professional and technical services and 36 percent in management of companies since 2002. North Dakota is the top job performer since the 2007 peak and is fifth since 2000.”

North Dakota ranked first in growth of gross state product per job; second in gross state product growth; and third in per capita income growth.

 The study used the following timeframes for ranking the states:
• Job growth rate between 2000 and 2007.
• Gross State Product (GSP) measures: real GSP growth since 2000, GSP per job 2008, growth in GSP per job 2000-2008.
• Income: per capita personal income growth 2000-2009 and median four person family income adjusted for cost of living, 2009.

“We have taken an aggressive approach to economic development over the past 10 years with a strategic plan that built on our strengths, diversified our economy and worked to create one of the best business climates in the nation,” said Gov. John Hoeven. “We have cut taxes for our hard-working citizens and businesses. By partnering with the private sector and investing in research and development, we set the stage for North Dakotans to use their natural ingenuity and hard work to lift our state up to a whole new level.”

“This report is more evidence that our efforts are getting results,” said Shane Goettle, commissioner of the North Dakota Department of Commerce. “The most important indicators, however, are that North Dakotans are working, their wages are increasing and our population is growing.”

The study also states that recent investments in research and development infrastructure are beginning to pay off for North Dakota which is the fastest growing state in science, technology, engineering, and mathematics job creation.

According to the report, “The message of Enterprising States is that the 50 ‘little Republics’ matter. State policies matter. Governors, state legislators, and local officials matter. Although the Federal government has been driving stabilization policy during the recent recession, it is the states [and territories] that will lead a crucial new growth strategy in the next decade.”

The report focuses on proactive state policies and best practices with proven impact. It also identifies top-performing states in five specific policy areas:
• Entrepreneurship and Innovation
• Exports
• Infrastructure
• Workforce Development and Training
• Taxes and Regulation

In addition to being named the top overall growth performer, North Dakota was ranked number five in the area of taxes and regulation.

The complete report is available online at http://ncf.uschamber.com/enterprising-states/.

About the North Dakota Department of Commerce
The North Dakota Department of Commerce works to improve the quality of life for North Dakota citizens by leading efforts to attract, retain and expand wealth. Commerce serves businesses and communities statewide through committed people and partners who offer valuable programs and dynamic services.

About the U.S. Chamber of Commerce
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than three million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

About the National Chamber Foundation
The National Chamber Foundation (NCF), a nonprofit affiliate of the U.S. Chamber of Commerce, is dedicated to identifying and fostering public debate on emerging critical issues. NCF provides businesses and government leaders with insight and resources to address tomorrow’s challenges.

by Commerce Department

http://www.commerce.nd.gov/news/detail.asp?newsID=737

A large parcel of land awaiting development in southwest Fargo will be the focal point of Sanford Health-MeritCare’s future expanded metro medical services.

Executives of the health system later this month will present their concepts for a major new medical center at Agassiz Crossing, described earlier as a $250 million to $350 million facility.

Following ongoing planning and design work, the target date calls for construction to begin in 2013 and continue into 2016, said Dennis Millirons, president of MeritCare Medical Center.

MeritCare bought the Agassiz Crossing land a decade ago with future expansion in mind. The 109-acre parcel is more than five times bigger than the 20 acres at its downtown medical center.

Meanwhile, the downtown center will remain a significant presence, as will MeritCare’s South University Drive campus.

“Whatever we decide to do, we’ll continue to have a meaningful and active role downtown,” Millirons said.

The Agassiz Crossing site is located south of Interstate 94 between the 45th Street and Veterans Boulevard exits, also close to the interchange with Interstate 29, making it an ideal location for a regional medical hub, Millirons said.

“It’s a perfect setting for developing health care as we look to the future,” he said. “That’s our hundred-year future.”

But MeritCare administrators said it is still too early in the planning stages to talk about specific features for the new medical center.

Both the trauma center and Roger Maris Cancer Center are in need of more space, but Millirons said details of expansions still are being worked out as planning continues.

“I don’t think you’ll see expansion here,” Millirons said of the downtown medical center, which has aging infrastructure and space limitations. “I think you’ll see preservation of the better facilities.”

The Sanford-MeritCare executive team will offer its concept of the new medical center as part of a strategic plan it will present to the Sanford Health-MeritCare board of trustees in a meeting June 15-18.

“The results of the approval of the strategic plan will be the start of an exciting new era here,” Millirons said.

Kelby Krabbenhoft, the chief executive officer of Sanford-MeritCare, first spoke of the possible Agassiz Crossing medical center last August, when the merger of Sanford Health, based in Sioux Falls, S.D., and MeritCare still was pending.

At the time, Krabbenhoft said he envisioned a center of $250 million to $350 million, later adding that the complex could include an attached hotel. A hotel, if built, would be an independent project, but MeritCare believes its planned medical center would be “attractive” to a hotel developer, Millirons said.

After physicians, nurses and others finish their planning for the center, including future service needs and demographic studies, MeritCare will begin working with architects on a design, he said.

“You can well imagine that’s going to take awhile,” Millirons added.

MeritCare’s Agassiz Crossing parcel is adjacent to the Urban Plains Center development, where MeritCare and the YMCA of Fargo-Moorhead are expected to announce plans early this week for what the partners describe as a “comprehensive fitness and wellness center.”

MeritCare broke ground in Detroit Lakes, Minn., last week for a $15 million clinic expansion and is working on plans for a combined new clinic and hospital in Thief River Falls, Minn.

Also, beginning in July, Sanford Health-MeritCare will switch to a “unified brand,” but the name is not yet available for public release, MeritCare spokesman Darren Huber said.

Take a look at the map.

 By: Patrick Springer, INFORUM

 Economic Indicators May 2009.pdf

For additional information, please contact Tifanie Gelinske at 701.364.1900 or tgelinske@gfmedc.com.

FARGO, N.D. – Sanford Health-MeritCare and the YMCA of Cass and Clay Counties are announcing a unique partnership to expand health and fitness in rapidly growing southwest Fargo. A new 78,000 square foot comprehensive fitness and wellness center will be built in the Urban Plains Development. The facility will be located at 5225 31st Ave. S., Fargo. The facility will cost $12 million and is an equal 50/50 partnership. It will employ 25-30 people and is projected to serve 3,500 members.

“Fitness is clearly a key component of helping people stay healthy. By partnering with the YMCA, we are proud to be able to work together to inspire people to improve their quality of life. This will be one of the premier facilities of its kind in the region and serves the entire greater Fargo-Moorhead area,” said Dennis Millirons, president, MeritCare Medical Center.

“It’s all about partnership and doing what’s best for the community,” said Paul Finstad, CEO of the YMCA of Cass and Clay Counties. “I believe together with Sanford Health-MeritCare, the YMCA can build a facility focused on providing services for families and individuals who are seeking a healthier, more active lifestyle. Partnering with Sanford Health-MeritCare will also help the YMCA fulfill our mission of enhancing the spirit, mind and body of all persons in our community.”

Zerr Berg Architects, Fargo, is the firm designing the facility. A groundbreaking will be held later this summer. The facility is expected to open in the fall of 2011. This is an especially good fit as plans for the neighborhood call for an active lifestyle community. Including 25-acre public park which will include a half-mile body of water, a boardwalk, sculpture, amphitheater, open green space for activity and over five miles of bike paths.

Background:
• An independent feasibility study conducted in the summer of 2006 found that a new comprehensive recreational facility would generate 3,316-4,437 new memberships. A four-community (West Fargo, Fargo, Moorhead, Dilworth) metro study of community wellness needs conducted in 2005 recommended indoor fitness and exercise, as well as aquatic facilities. Based on the survey data, the facility should be located in the high-growth area south of Interstate 94 and west of Interstate 29.
• Both nonprofits had been looking to build a center in southwest Fargo, the power of two nonprofits pooling their money has created a facility that can provide more diverse services to more people at one time. The opportunity to work together is a very unique experience. It’s good for Fargo to see that two different businesses can come with different missions and work for the betterment of the community.
• When Sanford Health & MeritCare merged, a commitment was made to bring growth opportunities to the greater Fargo region. This is the first of many expected examples.
• The partnership will provide more fitness opportunities for individuals and families. It enables both organizations to expand their core belief in the value of health, wellness and fitness as part of building the complete individual.
• Of 2,686 YMCAs nationwide 1,148 are collaborations with hospitals. Many health care organizations across the country have successfully partnered with local YMCA’s. Sanford Health has existing partnerships with YMCA’s in Sioux Falls, S.D. and Worthington, Minn.
• Members will have the ease-of-mind knowing they have the backing of a high level of medical expertise including direct access to physical therapists, exercise specialists, doctors, and others.
• MeritCare has housed fitness centers open to the public for over 20 years. MeritCare will be closing and moving from its current 17,000 sq foot fitness center at MeritCare Southpointe, 2400 32nd Ave, Fargo. Moving will allow us to expand much needed space for orthopedic doctors to see patients at MeritCare Southpointe.
• Because this is an equal partnership, the new facility will be an independent non-profit organization. Memberships will be available to all community members. We are also working on a plan to grant limited access for existing YMCA members.
• Amenities include: Recreation pool, racquetball and basketball courts, cycling room, running/walking track (nine laps per mile), professionally-certified trainers, cardiovascular equipment, group exercise space, community education room, massage and weights.
• Short-term child care will be available while people are using the facility.
• Sanford Health currently has partnerships with YMCA’s in Sioux Falls, S.D., and Worthington, Minn. These partnerships have great synergy and help to promote a healthy community.
• Sanford Health-MeritCare has an ongoing contract with the Fargo Force to provide sports medicine services and our relationship with the Urban Plains Center has been very positive.
• The YMCA and Sanford-MeritCare are very excited and proud to be part of a great neighborhood very focused on wellness. There are plans in place to develop the surrounding area with a 25-acre public park which will include a half-mile body of water, a boardwalk, sculpture, amphitheater, open green space for activity and over five miles of bike paths. This facility will help to supplement that effort.

Information for the Media
A press conference will be held at the Urban Plains Center, 5225 31st Ave. S., Fargo at 9:30 a.m. Directions: (to avoid the construction zone on 45th St.) Take the Veterans Blvd exit of I-94 south to 32nd Ave.

Spokespeople:
Dennis Millirons, president, MeritCare Medical Center
Paul Finstad, CEO, YMCA of Cass and Clay Counties

Exterior architects renderings of the new facility – Download Image.
Map showing new location in the Urban Plain Development – Download Image.