Duluth, Minn.-based Essentia Health and Marshfield (Wis.) Clinic Health System have signed an integration agreement to form a 25-hospital regional health system across four states.
The health systems announced the integration agreement July 27. In October 2022, the systems said they were in merger discussions and had signed a memorandum of understanding.
"Discussions the past few months have made it clear that this is an incredible opportunity to enhance both health systems, solidify our futures and take patient care and services to an even higher level," said Susan Turney, MD, who previously announced plans to step down as Marshfield Clinic Health System CEO in September 2023.
Essentia CEO David Herman, MD, will serve as the chief executive of the combined organization. Dr. Herman described both systems as "physician-led organizations with an unwavering commitment to the health of rural communities."
Once combined, Essentia and Marshfield Clinic will have a presence in Wisconsin, Minnesota, Michigan and North Dakota with 3,800 providers and 150 sites of care, including 25 hospitals. Fourteen of those hospitals come from Essentia and 11 from Marshfield Clinic.
Essentia and Marshfield Clinic plan to formally combine by the end of 2023 pending regulatory approval.