Overview of the Deal
Acquirer: Sanford Health
Target: Marshfield Clinic Health System
Total Transaction Size: Not publicly disclosed
Announcement Date: July 10, 2024
Merger Completion Date: January 2, 2025
Target Advisors: Not publicly disclosed
Acquirer Advisors: Not publicly disclosed
On July 10, 2024, Sanford Health and Marshfield Clinic Health System announced a nonbinding Memorandum of Understanding to merge their organizations, aiming to create an integrated health system dedicated to advancing rural healthcare in the Midwest.
The merger was finalized on January 2, 2025, resulting in a nonprofit integrated health system operating under the Sanford Health name.
Company Details (Acquirer – Sanford Health)
Sanford Health is the largest rural health system in the United States, providing comprehensive healthcare services across multiple states.
- Founded: 1996
- Headquarters: Sioux Falls, South Dakota, USA
- CEO: Bill Gassen
- Facilities: 56 hospitals, more than 270 clinic locations, and 144 senior care communities
- Employees: Nearly 56,000
- Service Area: South Dakota, North Dakota, Minnesota, Wyoming, Iowa, Wisconsin, and Michigan’s Upper Peninsula
Company Details (Target – Marshfield Clinic Health System)
Marshfield Clinic Health System is a physician-led integrated health system serving rural communities in Wisconsin and Michigan’s Upper Peninsula.
- Founded: 1916
- Headquarters: Marshfield, Wisconsin, USA
- CEO: Dr. Brian Hoerneman (now President and CEO of the Marshfield Clinic region of Sanford Health)
- Facilities: More than 60 clinic locations and 11 hospitals
- Employees: Approximately 13,000
- Specialties: Over 170 specialties with more than 1,400 providers
Projections and Assumptions
Short-Term Consequences
- Integration: Marshfield Clinic Health System becomes a region within Sanford Health, maintaining its brand and regional leadership.
- Leadership: Dr. Brian Hoerneman transitions to President and CEO of the Marshfield Clinic region of Sanford Health.
Long-Term Upsides
- Expanded Services: The merger aims to enhance access to healthcare services across the rural Midwest, leveraging combined resources to improve patient care.
- Research and Innovation: The integrated system plans to advance research initiatives, focusing on underrepresented populations, and foster innovation in rural healthcare delivery.
Risks and Uncertainties
- Integration Challenges: Merging operations, cultures, and systems may present challenges that require careful management to ensure seamless patient care.
- Regulatory Compliance: Ongoing adherence to healthcare regulations across multiple states is essential to maintain service quality and organizational integrity.
Sources
