Sanford Health closed its merger with Marshfield Clinic Health System on Wednesday.
The combined system, led by Sanford President and CEO Bill Gassen, has more than $10 billion in revenue and operates 56 hospitals across seven states, in addition to two health plans with roughly 425,000 members. It has almost 56,000 employees, including about 13,000 employees from Marshfield, according to a Thursday news release.
Related: Sanford Health, Marshfield Clinic move forward on proposed merger
Sioux Falls, South Dakota-based Sanford will be Marshfield's parent company under the member-substitution transaction. Sanford committed $500 million to capital spending at Marshfield over five years and said it will switch Marshfield to Sanford’s electronic health record.
Marshfield's footprint across Wisconsin and Michigan's Upper Peninsula opens a new region for Sanford. Dr. Brian Hoerneman, formerly the interim CEO at Marshfield Clinic, is president and CEO of the region, according to the news release.
While the system is operating under Sanford Health, the Marshfield name will continue to be used in the new region, the release said.
Adding Marshfield's health plan essentially doubles the size of Sanford's health plan offering, as well. The two health plans — Sanford Health Plan and Security Health Plan — are operating under a common management reporting structure led by Dr. Tommy Ibrahim, president and CEO of Sanford Health Plan. Krista Hoglund, regional president and CEO of Security Health Plan, reports to Ibrahim.
A Sanford spokesperson said leaders are working to "align and integrate" roles and noted thousands of available job openings. The overall integration process is underway and will continue throughout the year, the spokesperson said.
Patients should see no immediate changes to their care providers and locations, Sanford said in the release.
The combined system is establishing a regional board for the Marshfield area. Three Marshfield board members have also joined Sanford's Board of Trustees, according to the release.
Sanford and Marshfield signed a nonbinding memorandum of understanding to combine in July, followed by a definitive agreement in October.
Marshfield's proposed merger with Duluth, Minnesota-based Essentia Health fell through a year ago. Sanford and Minneapolis-based Fairview Health Services also called off merger plans in July 2023.
Sanford has grown substantially over the past decade and created a large footprint in rural healthcare. Strategic growth will continue to play a key role in the health system's strategy, Sanford Chief Financial Officer Nick Olson said in November. He said the health system has invested roughly $1.5 billion into the communities of its merger partners over the past 10 to 15 years.
Sanford also plans to keep investing in its existing operations to meet the needs of a growing and aging population.
"Our provider supply is stagnating or diminishing, so we've got to figure out how we can combat that," Olson said. "[Marshfield] just really seem[s] to talk the same language as us. They serve a similar population as us. They're really passionate about serving rural America."
Olson said the merger could also help stabilize finances at Marshfield, which were pressured by operating losses over the past few years. Marshfield reported a $14.8 million operating loss in the first nine months of 2024.
