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August 5, 2024
NORTH CENTRAL WISCONSIN – Advance national leadership in physician-led integrated care; lead the way in research with an emphasis on underrepresented populations; foster a healthy operating performance; and put patients, people and communities at the forefront – those are the goals of the recently announced planned combination of Marshfield Clinic Health System and South Dakota-based Sanford Health.
George Brown – Marshfield Clinic Health System board chair said the partnership marks a new chapter in the organization.
“We look forward to serving our patients as the nationwide leader in rural health care,” he said.
The announcement – which came last month – comes just a bit more than six months after Marshfield Clinic ended merger talks with Duluth, Minnesota-based Essentia Health.
Marshfield Clinic noted that the combination with Essentia Health at that time was “not the right path forward for our respective organizations, colleagues and patients.”
In a statement provided to The Business News from Marshfield Clinic, the organization said talks with Sanford Health started earlier this year as both organizations looked for new partnerships.
Sanford has been in discussions with three other Midwest health systems for potential mergers in recent years – including Minneapolis-based Fairview Health Services (2023), Utah-based Intermountain Healthcare (2021) and Iowa-based UnityPoint Health (2019).
“We believe that the time is right for Sanford Health and Marshfield Clinic Health System to partner,” the statement noted. “In an environment where collaboration and partnership are becoming more common, we know that our aligned missions and deep commitment to rural health, healing and community position us well to transform the future of health care and positively impact the wellbeing of the patients, residents, health plan members and communities we serve for decades to come.”
Marshfield Clinic is the most recent Wisconsin-based health system to seek a partnership with another organization.
Recent years saw partnerships between Bellin Health and Gundersen Health System – which recently announced a new name, Emplify Health – and ThedaCare and Froedert.
A good fit
In a statement from Marshfield Clinic, the two health organizations said they are “optimistic about the cultural, mission and strategic” similarities between them.
“Collaboration has become critical in today’s environment,” the statement noted. “It is our belief that coming together will allow both organizations the ability to harness the collective expertise, rich legacies of and commitment to excellence in rural healthcare delivery – as well as supporting each other’s strategic priorities and a unified vision for the future.”
According to the statement from Marshfield Clinic, Sanford Health – the largest rural health system in the U.S., headquartered in Sioux Falls, South Dakota – shares its culture, values and vision for the future that extends beyond its facilities and into the communities it serves.
“Together, our long-standing commitment to providing high-quality, compassionate care to our patients will enhance our ability to serve the unique needs of communities across our rural footprints and drive clinical innovation to ensure a healthier future for our patients,” the statement noted.
The combined system will bring together nearly 56,000 employees, 56 hospitals, 4,300 providers, two fully integrated health plans, specialty pharmacies and nationally recognized research institutions.
Marshfield Clinic noted in a statement that together, the health systems can do more for patients, residents, health plan members and communities than they could separately.
“As a combined system, we will strengthen rural care delivery, utilize innovative technology to provide a broader range of virtual services, unlock greater research capabilities and transform the patient experience to ensure every patient receives the best care no matter where they live,” the statement noted.
By bringing together two physician-led organizations, the statement noted that “providers will have a larger collective voice on the national stage to drive change.”
“With a larger health system footprint, we anticipate employees will benefit from additional paths for career growth and development,” the statement noted.
Timeline, details
The announcement, according to Marshfield Clinic, came after months of meetings that confirmed the two organizations were compatible.
The next step, the health system noted, is to work toward a definitive agreement that will outline how they will come together – which requires regulatory review.
“We anticipate the combination will close by the end of the year,” the statement from Marshfield Clinic noted. “The two systems remain separate, independent organizations until the combination closes.”
Upon finalization, the name of the parent company will be Sanford Health.
Marshfield Clinic Health System will be a region within Sanford Health and maintain regional leadership with its flagship medical campus in Marshfield.
Sanford Health president and CEO Bill Gassen will serve as president and CEO of the combined system.
Brian Hoerneman, Marshfield Clinic Health System’s interim CEO, will serve as president and CEO of the Marshfield Clinic Health System region.
According to the statement provided to The Business News by Marshfield Clinic, the Sanford Health Board of Trustees will be the parent governing board of the combined system.
“Marshfield will have a presence on the governing board,” the statement noted. “A Marshfield regional board will have delegated authority to oversee the day-to-day operations of the Marshfield Clinic Health System region.”
According to the Marshfield Clinic’s statement, the news was shared with the majority of staff and providers on the morning of July 10 – prior to its public announcement.
“We are committed to providing frequent updates throughout the process and will continue to share information with employees as decisions are made,” Marshfield Clinic stated.
Hoerneman said partnering with Sanford Health presents an “incredible opportunity” for both organizations to unify and establish themselves as the premier rural health system in the nation.
“Together, we will ensure sustainable access to exceptional care for our communities for years to come,” he said. “With a shared mission to serve, a mutual emphasis on research and education and a strong tradition of physician leadership, Sanford Health is the ideal partner for this endeavor.”
Gassen said Sanford Health is excited to work toward solving the most pressing challenges facing rural health care.
“We are who we are today because of combinations with care delivery organizations in rural communities across America’s heartland,” he said. “These opportunities have allowed us to follow through on our promise to deliver world-class health care to every patient we serve no matter their zip code, and we are eager to continue building on this track record with Marshfield Clinic Health System.”
Outcome
The combination, according to both organizations, aims to accomplish several things, including:
- Improve patient outcomes through broader population health initiatives, value-based care programs and new innovative care delivery models
- Harness the full promise of technology, including virtual care, digital health, data analytics, AI and genomic medicine to advance the health of communities
- Expand the breadth and depth of research capabilities, including increasing access to nearly 1,000 active clinical trials and clinical studies and combining research expertise to bring new treatments and cures to patients
- Expand capabilities that allow for greater investment in clinical needs, directly supporting patients, providers and communities
- Strengthen the ability to train, educate and support future physicians and caregivers through shared initiatives, including graduate medical education programs and strong partnerships with educational institutions throughout both regions
- Create new opportunities for research and collaboration, robust peer networks and enhanced professional development and training
The combined nonprofit system, the statement noted, will also enable investment in the care of patients and communities across the rural Midwest to meet healthcare needs today and into the future.
Over the last decade, Sanford Health has invested more than $1.5 billion in communities across South Dakota, North Dakota, Minnesota and Iowa including expanded access to specialty care and state-of-the-art facilities.
Lauris Molbert, chair of the Sanford Health Board of Trustees, said partnership is a win-win for the patients and communities.
“This combination will strengthen local, patient-centered nonprofit health care for generations to come,” he said.
