After the combination attempt between Fairview Health Services and Sanford Health fell through Thursday, consultants and advisers said the organizations are likely to seek other merger partners or acquirers. But new state legislation that bolsters merger oversight may create additional hurdles for Fairview in its search.

The nonprofit health systems had faced concerns from Fairview's University of Minnesota Medical Center, Minnesota lawmakers and Minnesota Attorney General Keith Ellison (D) about an out-of-state entity controlling the university’s healthcare facilities. University of Minnesota executives previously said they were excluded from merger talks, which heightened their worries that Sioux Falls, South Dakota-based Sanford would cut services

Fairview, which continues to report operating losses, will be compelled to find another partner to stabilize its financial situation, industry observers predicted.