SIOUX FALLS, S.D. (WNAX) – Intermountain Healthcare, of Salt Lake City, and Sanford Health, based in Sioux Falls, have signed a letter of intent to develop a strategic partnership.

Kelby Krabbenhoft, president and CEO of Sanford Health says its another milestone for their system.

Krabbenhoft says the merger can provide better service and drive down costs.

Krabbenhoft says Sanford has grown largely due to mergers.

The merger is expected to close in 2021 pending federal and state approvals.

The combined organization will employ more than 89,000 people, and operate 70 hospitals, many in rural communities. It will operate 435 clinics across seven states, provide senior care and services in 366 locations in 24 states, and insure 1.1 million people. The organization will have headquarters in Salt Lake City, Utah, and corporate offices in Sioux Falls, South Dakota.

Marc Harrison, President and CEO of Intermountain Healthcare, will be president and CEO of the combined organization. Kelby Krabbenhoft, president and CEO of Sanford Health will serve as president emeritus. Both organizations will continue to operate under their current names for the foreseeable future.