Sioux Falls, S.D.-based Sanford Health and Marshfield (Wis.) Clinic Health System have signed a nonbinding agreement to merge into a 56-hospital system with more than 56,000 employees, including 4,300 providers.
The proposed transaction would combine two physician-driven health systems to include 271 clinic locations, multiple specialty pharmacies, research institutions and two fully integrated health plans — Sanford Health Plan and Security Health Plan — serving more than 425,000 members.
"We are who we are today because of combinations with care delivery organizations in rural communities across America's heartland," Sanford Health President and CEO Bill Gassen said in a July 10 news release. "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."
The nonprofit combination aims to:
- Improve outcomes through broader population health initiatives, value-based care programs and innovative care models.
- Use new technology such as virtual care, digital health, data analytics, AI and genomic medicine to improve the health of communities.
- Expand access to nearly 1,000 active clinical trials and studies and combine research to bring new treatments to patients.
- Boost clinical investments that support patients, providers and communities.
- Strengthen the ability to train future physicians and providers through shared initiatives, including graduate medical education programs and partnerships with educational institutions across both regions.
- Create opportunities for research and collaboration, strengthen peer networks and improve professional development and training.
"Partnering with Sanford Health presents an incredible opportunity for our organizations to unify and establish the premier rural health system in the nation," Marshfield Clinic Interim CEO Brian Hoerneman, MD, 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."
If the deal closes, the name of the parent company will be Sanford Health, with system headquarters in Sioux Falls, S.D. Marshfield Clinic will be a region within Sanford Health and maintain regional leadership with its flagship campus in Marshfield, Wis. It will also have a regional board of directors, physician executive council and brand presence.
Mr. Gassen will serve as president and CEO of the combined system. Dr. Hoerneman will serve as president and CEO of Marshfield Clinic region.
The transaction is expected to close by the end of the year, subject to regulatory processes and closing approvals.
Sanford and Marshfield were part of two separate proposed mergers that collapsed recently. Duluth, Minn.-based Essentia Health and Marshfield scrapped plans to combine into a 25-hospital system in January. Sanford Health and Minneapolis-based Fairview Health Services called off their plan to form a 50-hospital last year.