Healthcare Giant Sanford Health to Merge with Wisconsin System, Creating Massive 56,000 Employee Organization in 2024!

Sioux Falls, South Dakota – Sanford Health, a prominent healthcare organization, announced its latest merger endeavor with a Wisconsin-based health system to create a combined organization with a workforce of 56,000 employees. This collaboration involves Marshfield Clinic Health System, a well-established integrated health system in central Wisconsin, serving 45 communities across Wisconsin and the Upper Peninsula of Michigan.

With revenue totaling $10.3 billion in 2023, the combined entity would rank just outside the nation’s top 20 largest health systems. Under the leadership of Sanford CEO Bill Gassen, the merged organization will retain the Sanford Health name and be headquartered in Sioux Falls. Marshfield Clinic Health System will function as a region within Sanford Health, alongside other regions in cities like Fargo and Bemidji, led by Dr. Brian Hoerneman as the current interim CEO.

Gassen expressed Sanford Health’s commitment to strategic partnerships, attributing the organization’s success to collaborations with like-minded entities in the past. Notably, both Sanford and Marshfield had faced unsuccessful merger attempts with other health systems before embarking on this new venture. The commonality between the two systems lies in their shared focus on rural healthcare, catering to underserved communities spanning geographies similar in size to Sioux Falls.

Financial growth and operational improvements mark significant milestones for both organizations. Sanford reported a substantial increase in revenue and operating income in recent years, while Marshfield is implementing a robust financial improvement plan following consecutive years of losses. The projected merger aims to capitalize on synergies and shared cultural values, fostering a seamless integration that aligns with the organizations’ vision for the future.

As the merger progresses, discussions around governance and operational logistics will be crucial to ensuring a smooth transition. Both organizations look forward to the opportunities presented by this partnership, emphasizing the potential for enhanced patient care, improved access, and sustainable financial practices. The impending merger, subject to regulatory approval and closing conditions, signals a new chapter in healthcare innovation and service delivery for Sanford Health and Marshfield Clinic Health System.