Duluth, Minnesota-based Essentia Health and Marshfield, Wisconsin-based Marshfield Clinic Health System shared plans Wednesday to explore a possible merger.
If joined, the integrated regional health system would include a network of 3,800 providers and 150 care sites, including 25 hospitals. The entity would serve more than 2 million rural and mid-urban residents of the Midwest.
“Through a new partnership, we can support the care models, services, research and technologies to ensure sustainable and prosperous rural healthcare,” said Essentia CEO David Herman, MD, announcing the signing of the memorandum of understanding by the organizations.
The nonprofit Essentia Health operates 14 hospitals, 77 clinics, six long-term care facilities and other businesses in its home state of Minnesota, as well as North Dakota and Wisconsin. The not-for-profit comprehensive health system employs 15,000 people and serves patients in Wisconsin, North Dakota and Minnesota.
Marshfield Clinic Health System often describes itself as one of the largest rural integrated systems in the country. The nonprofit organization employs more than 12,000 people at 11 hospitals, a health plan, research and education programs and other care sites. It is geographically adjacent to Essentia and operates throughout Wisconsin and parts of Michigan.
“These are two of the top health systems in the country, looking to come together to serve rural communities and beyond,” Marshfield Clinic CEO Susan Turney, MD, said in the release. “When I look at Essentia, I see an organization with world-class expertise that complements our own. And I see their long, rich history of serving communities with a mission very similar to ours at Marshfield Clinic Health System.”
The health systems said the potential merger would increase patient access to primary and specialty care. Building on each organization's strengths, the proposed entity could expand high-quality care services “at an affordable cost with an exceptional patient experience,” they said.
Essentia and Marshfield Clinic noted that the signed memorandum is the first of many merger steps and that “more information will be shared as discussions progress.”
Marshfield Clinic is hot on its heels cooperation agreement which brought Dickinson County Healthcare under its umbrella. Closed in February, the deal saw Marshfield Clinic expand its reach into northern and rural Michigan.
Last year, Essentia Health terminated the purchase of 14 North Dakota and Minnesota hospitals and other clinics from CommonSpirit Health's Catholic Health Initiatives. The Duluth organization more recently announced the addition of Mid Dakota Clinic, a four-clinic health system based in Bismarck, North Dakota.
