Minnesota-based Essentia Health and Wisconsin-based Marshfield Clinic Health System have decided not to move forward with their integration proposal that would have formed an integrated regional health system in Wisconsin, Minnesota, Michigan and North Dakota.
In October 2022, the two organizations signed a memorandum of understanding to explore the merger. With complementary geographies and capabilities, the two health systems said they would evaluate how they could merge. A combined organization would have a network of 3,800 providers serving more than 2 million people in rural and urban communities through more than 150 sites of care, including 25 hospitals.
Without giving specific reasons, the two organizations now say they have decided that “a combination at this time is not the right path for our respective organizations, colleagues and patients.”
“As we explore this opportunity, I appreciate the relationships we have built with Marshfield Clinic’s providers, staff and skilled leaders who share our dedication to excellent care,” said Essentia Health CEO David Herman, MD, it’s a statement.
“Essentia Health and Marshfield Clinic Health System are high-performing, highly respected, community-focused organizations,” said Marshfield Interim CEO Brian Hoerneman, MD. “Those similarities served as the foundation for efforts toward a combination. As we go our separate ways, Marshfield Clinic looks forward to advancing our 100-year legacy of providing compassionate, accessible care to the communities we serve. Our commitment to continually improving the “The level of care we provide remains strong as we look to the future.”
In its last session, the Minnesota Legislature passed a law that would require a state review of some proposed hospital or health care system mergers, and allow them to be blocked if they are considered harmful to the public or would lead to reduced health outcomes for residents. Minnesota. , which may have complicated the deal.
The Marshfield News Herald notes that “this is the second time in just over four years that Marshfield Clinic Health System has been in merger talks that failed. In December 2019, Gundersen Health System and Marshfield Clinic Health System decided to remain separate companies after several months of discussions to integrate.”