Sanford Health, the nation’s largest rural health system 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, today announced a non-binding memorandum of understanding to combine their complementary assets and capabilities and create an integrated health system dedicated to advancing world-class care in the rural Midwest.
Both organizations share a rich history of delivering exceptional rural health care to the patients and communities they collectively serve.
Bill Gassen
“We are excited to combine our shared purpose to lead the way into the future, drive innovation and solve the most pressing challenges facing rural health care,” said Bill Gassen, president and CEO of Sanford Health. “We are who we are today because of our partnerships with health care delivery organizations in rural communities across America’s heartland. These opportunities have allowed us to deliver on our promise to provide world-class health care to every patient we serve, regardless of their ZIP code, and we look forward to continuing to build on that experience with Marshfield Clinic Health System.”
This partnership will bring together two strong physician-led organizations, each with a reputation for excellence in quality, safety and patient experience. Together, the combined organization will advance national leadership in physician-led, integrated care; lead the way in research with a focus on underrepresented populations; drive healthy operational performance; and put patients, individuals and communities first.
The focus is on affordability and access to care
The combined nonprofit system will enable a vital investment in patient care and communities in the rural Midwest to meet the health needs of today and tomorrow. Over the past decade, Sanford Health has invested more than $1.5 billion in communities in South Dakota, North Dakota, Minnesota and Iowa, including expanding access to specialty care and state-of-the-art facilities.
Dr. Brian Hoerneman
“Partnering with Sanford Health represents an incredible opportunity for our organizations to unify and establish the nation’s premier rural health system,” said Brian Hoerneman, MD, interim CEO of Marshfield Clinic Health System. “Together, we will ensure sustainable access to exceptional care for our communities for years to come. With a shared mission of service, a mutual focus on research and education, and a strong tradition of medical leadership, Sanford Health is the ideal partner for this endeavor.”
According to Marshfield Clinic Health System Chairman George Brown, MD, “This partnership marks a new chapter for our organization, and we look forward to serving our patients as a national leader in rural health care.”
Lauris Molbert, Chair of the Sanford Health Board of Trustees, added, “This partnership is a win-win for the patients and communities we serve, as well as for our organizations with a long history of innovation, medical leadership and dedicated caregivers. This combination will strengthen local, patient-centered nonprofit health care for generations to come.”
A combined health system that will include research and health insurance plans
The non-profit association:
- Improving patient outcomes through broader population health initiatives, value-based care programs, and innovative new models of care delivery;
- Fully harness the promise of technology, including virtual care, digital health, data analytics, AI and genomic medicine to improve the health of communities;
- Expanding the breadth and depth of research capabilities, including increasing access to nearly 1,000 active clinical trials and studies and combining research expertise to bring new treatments and cures to patients;
- Develop capabilities that enable greater investment in clinical needs, directly supporting patients, providers and communities;
- Strengthen capacity to train, educate and support future physicians and caregivers through joint initiatives, including graduate medical education programs and strong partnerships with educational institutions in both regions; and
- Create new research and collaboration opportunities, strong peer networks, and enhanced professional development and training.
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 institutes.
By leveraging each organization’s respective health plan, Sanford Health Plan and Security Health Plan, the fully integrated system will be able to serve more than 425,000 members, maximizing the benefits it can provide to patients and members through shared governance.
Once the merger is complete, the parent company name will be Sanford Health, with the system headquarters in Sioux Falls, South Dakota. Marshfield Clinic Health System will be a region within Sanford Health and will maintain regional leadership with its flagship medical campus in Marshfield, Wisconsin, a regional board of directors, a regional physician executive council and a regional brand presence. Sanford Health President and CEO Bill Gassen will serve as president and CEO of the combined system. Marshfield Clinic Health System interim CEO Brian Hoerneman, MD, will serve as president and CEO of the Marshfield Clinic Health System region.
The merger is expected to close by the end of the year, subject to regulatory processes and closing conditions. There are no immediate changes to employees or the people served by each system. Sanford Health and Marshfield Clinic Health System will remain two separate and independent organizations until closing.
About Sanford Health
Sanford Health, the largest rural health system in the United States, is dedicated to transforming the health care experience and providing access to world-class health care in America’s heartland. Headquartered in Sioux Falls, South Dakota, the organization serves 1.4 million patients and nearly 200,000 health plan members across 249,000 square miles. The integrated health system includes 45 hospitals, 211 clinics, more than 160 Good Samaritan Society senior living centers, 2,900 Sanford physicians and advanced practice providers, 540 active clinical trials and nine global clinics worldwide. To learn more about Sanford Health’s commitment to shaping the future of rural health care across the lifespan, visit sanfordhealth.org.
About Marshfield Clinic Health System
Marshfield Clinic Health System is an integrated health system whose mission is to enrich lives through accessible, affordable and compassionate health care. The health system serves the Upper Peninsula of Wisconsin and Michigan with more than 1,400 providers spanning 170 specialties, health plans, and research and education programs. Major operations include more than 60 Marshfield Clinic locations, 11 hospitals, Marshfield Children’s Hospital, Marshfield Clinic Research Institute, Security Health Plan and the Marshfield Clinic Health System Foundation.
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