Marshfield Clinic Health System and Sanford Health Announce Definitive Agreement to Form a Premier Rural Health System
Transaction Announcement
Sanford Health, headquartered in Sioux Falls, South Dakota, and Marshfield Clinic Health System, a physician-led integrated health system serving rural Wisconsin and Michigan’s Upper Peninsula, announced the signing of a definitive merger agreement to form the largest rural health system in the U.S. Since the signing of a Letter of Intent in June, the combination has received overwhelming support from Marshfield’s physicians. The partnership will form a $10 billion integrated health system focused on delivering high-quality care in the rural Midwest.
“This significant milestone means we are one step closer to bringing together our nonprofit, community-focused health care organizations,” said Bill Gassen, president and CEO of Sanford Health. “We are excited to strengthen access to cutting-edge care and invest in new initiatives to serve the needs of patients throughout the rural Midwest, now and in the years ahead.”
“In Sanford Health we found a partner that closely aligns with our culture, mission, and values, and we look forward to continuing on this journey as the premier rural health system in the United States,” said Brian Hoerneman, M.D., interim CEO of Marshfield Clinic Health System. “Our shared commitment to excellence, quality and safety, and delivering an exceptional patient experience for the rural communities we serve makes this partnership a win for our patients and our dedicated teams that carry out our mission daily.”
As part of the agreement, Sanford Health will invest $500 million over the next five years to support strategic capital improvements at Marshfield Clinic Health System, ensuring expanded services and modernized facilities. In addition, Marshfield will convert to Sanford’s advanced electronic health record system, enhancing the quality of care delivered across both systems.
The merger will create a combined health system comprising 56 hospitals, 425,000 health plan members, and a deep commitment to improving care in underserved rural areas. With leadership from Bill Gassen, President and CEO of Sanford Health, and Dr. Brian Hoerneman leading the Marshfield region, the combined organization will focus on innovative care models, cutting-edge technology, and advanced clinical research to meet the evolving healthcare needs of the rural Midwest.
Juniper’s Role
Engaged by Marshfield Clinic Health System’s Board, Juniper Advisory proactively assessed strategic alternatives to enhance the system’s national reputation as a premier provider of integrated rural healthcare services. Juniper evaluated partnership options aligned with the system’s objectives of strengthening operational performance, supporting its world-class medical staff and expanding growth opportunities to meet the needs of its rural communities close to home.
Throughout the process, Juniper enabled the system’s Board, management and physician leadership to navigate complex decisions effectively. Juniper initiated and managed a rigorous process to evaluate potential partners, ensuring alignment with the system’s objectives. This included managing a broad range of interest from local, regional and national potential partners; drafting detailed information materials; supporting the Board’s evaluation of alternatives; aiding Marshfield’s Class A physicians in their evaluation of the partnership; and assisting with the negotiations of the agreement between the Marshfield Clinic and Sanford Health.
About Marshfield Clinic Health System
Marshfield Clinic Health System is an integrated health system whose mission is to enrich lives through accessible, affordable compassionate health care. The Health System serves Wisconsin and Michigan’s Upper Peninsula with more than 1,400 providers comprising 170 specialties, health plan, and research and education programs. Primary operations include more than 60 Marshfield Clinic locations, 11 hospitals, Marshfield Children’s Hospital, Marshfield Clinic Research Institute, Security Health Plan and Marshfield Clinic Health System Foundation.
About Sanford Health
Sanford Health, the largest rural health system in the United States, is dedicated to transforming the health care experience and providing access to world-class health care in America’s heartland. Headquartered in Sioux Falls, South Dakota, the organization serves 1.4 million patients and nearly 200,000 health plan members across 250,000 square miles. The integrated health system has 45 hospitals, 211 clinic locations, more than 160 Good Samaritan Society senior living centers, 2,900 Sanford physicians and advanced practice providers, 540 active clinical trials, and nine world clinic locations around the globe.
To learn more, please refer to the Marshfield Clinic Health System website. For more information about Juniper, contact Jordan Shields at 312.506.3005 or jshields@juniperadvisory.com.
About Juniper Advisory
Juniper is a specialized investment banking firm focused exclusively on non-profit hospital system mergers and acquisitions. The team is generally considered the most experienced in the country advising health systems on business combination transactions for four decades.