Oct 23, 2024

Sioux Falls-based Sanford Health and Wisconsin-based Marshfield Clinic Health System have taken a step forward in their planned merger.

The two health systems announced today that they have signed an affiliation agreement “to combine their complementary assets and capabilities and create an integrated health system dedicated to advancing world-class care in the rural Midwest,” they said in a statement.

In July, Sanford and Marshfield announced that they’d signed a letter of intent to combine.

“This significant milestone means we are one step closer to bringing together our nonprofit, community-focused health care organizations,” said Bill Gassen, president and CEO of Sanford Health. “We are excited to strengthen access to cutting-edge care and invest in new initiatives to serve the needs of patients throughout the rural Midwest, now and in the years ahead.”

The combined nonprofit system will include 56,000 employees.

Marshfield Clinic Health System, a century-old integrated health system based in Marshfield in central Wisconsin, is about one-fourth the size of Sanford in terms of employees. It serves 45 communities across Wisconsin and the Upper Peninsula of Michigan.

The combined organization would have had $10.3 billion in revenue in 2023, ranking it just outside the nation’s top 20 largest health systems. It includes a health plan serving more than 425,000 members.

“In Sanford Health, we found a partner that closely aligns with our culture, mission and values, and we look forward to continuing on this journey as the premier rural health system in the United States,” said Dr. Brian Hoerneman, interim CEO of Marshfield.

“Our shared commitment to excellence, quality and safety, and delivering an exceptional patient experience for the rural communities we serve makes this partnership a win for our patients and our dedicated teams that carry out our mission daily.”

The combination is expected to close by the end of the year, subject to regulatory processes and closing conditions. Sanford Health and Marshfield Clinic Health System remain two separate, independent organizations until the closing.