More Information Released on Sanford Health and Marshfield Clinic Partnership

Marshfield Clinic to Combine with Sanford Health

MARSHFIELD, WI (OnFocus) – More details have been released after this morning’s announcement of a Memorandum of Understanding between Sanford Health and Marshfield Clinic Health System.

Sanford Health, the largest rural health system in the U.S., headquartered in Sioux Falls, South Dakota, and Marshfield Clinic Health System, a physician-led integrated health system serving rural Wisconsin and Michigan’s Upper Peninsula, have announced a nonbinding Memorandum of Understanding (MOU) to merge their assets and capabilities. This partnership aims to create an integrated health system dedicated to advancing world-class care in the rural Midwest.

Here’s what we know so far:

• Marshfield Clinic Health System and Sanford Health have signed a nonbinding MOU to combine their organizations.
• The goal is to create the premier rural health system in the U.S. Both organizations have similar cultures, values, and commitments to providing world-class care in rural communities, leveraging research and education.
• The combined system will invest at least $500 million in Marshfield Clinic Health System over the next five years and up to $500 million to transition to the Epic electronic medical record system.
• Sanford Health will support Marshfield Clinic Health System’s debt, liabilities, and capital requirements.
• Sanford Health will become the parent company, and three Marshfield Clinic Health System Board members will join the new system board.
• The Marshfield Clinic brand name and identity will continue to be incorporated into the combined organization.
• Next Steps: The due diligence process is expected to proceed smoothly, with the transaction anticipated to be completed by the end of the year. An Integration Management Office will be formed to ensure a coordinated alignment of the systems.

“We are excited to combine our common purpose to lead the way for the future, drive innovation, and solve the most pressing challenges facing rural healthcare,” said Bill Gassen, president and CEO of Sanford Health. “Our history of merging with care delivery organizations in rural communities across America’s heartland has enabled us to deliver world-class healthcare to every patient we serve, regardless of their zip code. We are eager to continue building on this track record with Marshfield Clinic Health System.”

The partnership will bring together two strong physician-driven organizations known for excellence in quality, safety, and patient experience. The combined entity will advance national leadership in physician-led integrated care, focus on research with an emphasis on underrepresented populations, maintain a healthy operating performance, and prioritize patients, people, and communities.

The combined nonprofit system will invest in the care of patients and communities across the rural Midwest to meet healthcare needs now and in the future. Over the past 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.

The nonprofit combination is expected to:

• Improve patient outcomes through broader population health initiatives, value-based care programs, and innovative care delivery models.
• Harness technology, including virtual care, digital health, data analytics, AI, and genomic medicine, to advance community health.
• Expand research capabilities, increasing access to nearly 1,000 active clinical trials and studies, and combining expertise to bring new treatments and cures to patients.
• 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.
• Create new opportunities for research and collaboration, robust peer networks, and enhanced professional development and training.

The combined system will consist of nearly 56,000 employees, 56 hospitals, 4,300 providers, two fully integrated health plans, specialty pharmacies, and nationally recognized research institutions. The integrated health plans, Sanford Health Plan and Security Health Plan, will serve more than 425,000 members, maximizing benefits through shared governance.

Upon finalization, the parent company will be named Sanford Health, with system headquarters in Sioux Falls, South Dakota. Marshfield Clinic Health System will operate as a region within Sanford Health, maintaining regional leadership with its flagship medical campus in Marshfield, Wisconsin, a regional board of directors, a regional physician executive council, and regional brand presence. Bill Gassen will serve as president and CEO of the combined system, while Brian Hoerneman, M.D., will serve as president and CEO of the Marshfield Clinic Health System region.

The combination is expected to close by the end of the year, subject to regulatory processes and closing conditions. There will be no immediate changes for employees or the individuals served by each system, which will remain separate and independent until the closing.

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