Celebrating 40 Years of Partnership

Perham Health and Sanford Health’s Enduring Commitment to Community Care

In 1985, when Memorial Hospital—now Perham Health—stood at the brink of closure, a lifeline emerged in the form of a partnership with what was then St. Luke’s Hospital, now Sanford Health.

Four decades later, the partnership between Perham Health and Sanford Health remains strong and deeply rooted in shared values. What began as a simple management agreement has grown into a mutually enriching relationship that has transformed healthcare for the region and brought enduring benefits to patients, employees, and the broader community.

The Early Days: Survival and Stability

At the time, Memorial Hospital was struggling with mounting financial pressures and dwindling resources. They borrowed $50,000 to make payroll—a debt that took five years to repay – and were down to only a couple of physicians left. The situation was very dire, and the hospital board feared the worst.

“A former board member told me that the hospital was very near closure at that time. It was that dire,” recalled Chuck Hofius, current CEO of Perham Health.

To save the hospital, the hospital board began reaching out to other healthcare systems to see if anyone would partner with them. St. Luke’s Hospital (Sanford Health) stepped forward with a management agreement—the first management agreement for the Fargo-based hospital.

At its inception, the partnership focused on stabilizing Memorial Hospital by bringing in new leadership, implementing a new payment system, and acquiring the local physician practice. Sanford Health had the experience, resources, and recruiting muscle that Perham Health lacked.

“Originally, agreeing to partner was just about helping a neighbor in need,” said Dan Olson, Vice President of Operations at Sanford Health Network. “But over time, it’s evolved into something much more. We have an affiliation with one of the best critical access hospitals in the state.”

“We don’t just support Perham—they teach us too,” said Dan. “Being an independent hospital allows Perham Health to try new things, and Chuck is so knowledgeable. I can bounce ideas off of him. We’re learning from each other. It’s a true exchange.”

A Partnership That Grew With Its People

Over the years, the collaboration has expanded far beyond administrative support. Today, Perham Health and Sanford Health share providers, electronic medical record systems, and group purchasing, which enables Perham Health to purchase supplies at a lower cost than it could on its own.

Outreach specialists now bring cardiology, nephrology, oncology, and other services directly to patients in Perham. A joint venture pharmacy opened when the town’s only pharmacy closed. Telehealth services, such as psychiatry specialists in the emergency department, have extended access even further.

“We’ve gone from four providers to more than thirty,” said Chuck. “That kind of growth has only been possible because of the support and structure this partnership provides.”

One of the most tangible benefits of the relationship is shared access to technology. Through Sanford Health, Perham Health uses the Epic electronic medical record system, allowing seamless coordination between providers in Perham and specialists in Fargo. Patients benefit from MyChart, which lets them access their results, appointments, and communications with providers from both locations—all in one place.

“It would’ve been almost cost-prohibitive for a facility our size to get Epic on our own,” said Chuck. “But now, our patients have the same access and experience as anyone in a big metro area.”

Another benefit is the collaboration between providers through the One Call program. “Our providers can get any specialist in Fargo on the line fairly quickly. If they’re dealing with a patient with a kidney issue that they haven’t dealt with before, they can get a nephrologist on the line pretty quickly and get some advice,” explained Chuck.

Supporting Staff, Building Careers

This affiliation has helped transform healthcare careers. Employees from either organization can easily move between facilities, furthering their careers without leaving the family of care.

“One of our lab techs went to Fargo for a leadership role for a couple of years, then came back as our director,” said Chuck. “It’s this kind of fluidity that strengthens both teams.”

For smaller departments, having peers at a larger facility, such as Sanford Health, provides critical support.

“It’s great to have someone to call when I have a question or need advice,” said Sue Von Ruden, Community Relations Director. “That kind of connection makes a big difference in how we serve our patients.”

Rooted in Community, Reaching Toward Innovation

Perham Health has grown to over 700 employees—up from about 150 at the start of the partnership—and is now one of the region’s top employers. Yet its identity remains intensely local.

“The Perham area is proud to own their hospital,” said Chuck. “But newer residents also value that a broader system with deep expertise backs us. This partnership gives them both.”

From sleep studies to oncology to advanced rehabilitation services, the partnership continually evolves to meet changing needs.

A Personal Connection That Endures

For Chuck and Dan, the partnership is more than professional—it’s personal.

“I grew up near here, in Pelican Rapids,” said Dan. “Coming back and working with Chuck—someone I’ve known for years—makes this even more meaningful. I’ve learned so much from everything he has done over the years.”

“I’ve been here 28 years,” said Chuck. “When I started, many people thought the hospital would eventually close, and we would just have a nursing home. Now we’ve built a new hospital and a new nursing home, we’ve gone from four providers to thirty, expanded into surrounding communities, and pioneered new models of care. I’m incredibly proud of what we’ve done together.”

Looking Ahead: Strength Through Shared Values

The partnership between Perham Health and Sanford Health stands as a powerful testament to what is possible when rural healthcare organizations come together with trust, vision, and a shared purpose. It’s a partnership rooted in service, strengthened by innovation, and defined by its people.

“It’s a win-win,” said Chuck. “And most importantly, it’s a win for the communities we serve.”

“We’re proud to be affiliated with Perham,” added Dan. “They make us better.”

As Perham Health and Sanford Health celebrate 40 years together, one thing is clear: this partnership isn’t just about keeping a hospital open—it’s about building a legacy of care, community, and connection that will continue to thrive for generations to come.