Marshfield Clinic completes merger with South Dakota-based Sanford Health

Marshfield Clinic Health System has joined the largest rural health system in the United States.

The central Wisconsin-based health clinic announced the completed merger with Sanford Health on Thursday, nearly six months after it was first reported.

Marshfield Clinic will become a region of Sanford Health, according to a press release, and the Marshfield brand “will continue to be predominant” at locations in the region. Sanford is based in Sioux Falls, South Dakota and has locations across the Dakotas, as well as in Iowa, Minnesota and other states.

A spokesperson for Marshfield Clinic declined WPR’s interview request.

Dr. Brian Hoerneman, previous interim CEO of Marshfield Clinic and the new regional president and CEO, said in a press release the merger “brings together two organizations deeply committed to advancing health care” in rural America.

“I am excited about the opportunities ahead as our teams learn from each other and combine our complementary strengths, cultures and missions,” Hoerneman said in the statement. 

According to the press release, Marshfield Clinic patients will continue to receive care from the same providers with no immediate changes.

Marshfield Clinic had previously attempted to merge with Duluth-based Essentia Health before the partnership fell through a year ago. 

The central Wisconsin-based health system furloughed around 360 employees in January 2024. The system then expanded its labor and delivery services and emergency services in the Eau Claire region last spring in response to the sudden closure of two neighboring hospitals.

City of Marshfield Mayor Lois TeStrake said she supports Marshfield Clinic’s merger with Sanford Health. She feels the move will ensure the health system continues to operate in a challenging health care landscape.

“We’re going to keep what we have, but they’re just going to help us to make it better,” TeStrake said. 

TeStrake, who has publicly shared her experience receiving treatment for pancreatic cancer at Marshfield Clinic, said the health system is an important resource in her community. She said she’s not concerned about ownership transferring out of state, pointing out that the model is not uncommon among health care systems.

Wisconsin has seen a number of health care system mergers in recent years, following a national trend of rapid consolidation over the last decade. Researchers have found hospital mergers tend to increase health care prices, while having a negligible effect on patient care.