Sanford Health and the Marshfield Clinic Form the Premier Rural Health System
Transaction Announcement
Marshfield Clinic Health System (MCHS), a physician-led integrated health system serving rural Wisconsin and Michigan’s Upper Peninsula, and Sanford Health, headquartered in Sioux Falls, South Dakota, have successfully completed their partnership, creating the largest rural health system in the United States. This collaboration merges their strengths to enhance healthcare delivery in underserved rural areas, addressing the unique challenges of these communities while improving access to quality care. As part of this integration, Marshfield’s Security Health Plan and Sanford Health Plan will operate under a common management and governance structure.
The newly formed $10B+ integrated health system represents a significant milestone in the rural Midwest healthcare landscape. By joining forces, MCHS and Sanford Health are deepening their commitment to improving healthcare access and quality across the region. The collaboration enjoys strong support from Marshfield’s physicians, who are crucial to the system’s success. As part of the partnership, Sanford Health will invest $500 million over the next five years in strategic capital improvements at Marshfield Clinic Health System, focusing on expanding services and modernizing facilities. Additionally, Marshfield will transition to Sanford’s advanced electronic health record system, further enhancing the quality of care delivered across both organizations.
“This historic milestone paves the way for us to advance world-class care across the rural Midwest and accelerate vital investments in the communities we have the privilege of serving,” said Bill Gassen, president and CEO of Sanford Health. “Together, we will reimagine the future of local, patient-centered nonprofit health care by expanding services, enhancing access and harnessing innovative technologies to improve the health of our communities.”
“Our partnership brings together two organizations deeply committed to advancing health care for the people and communities we serve in rural America,” said Brian Hoerneman, M.D., who previously served as interim CEO of Marshfield Clinic Health System and has now transitioned to the role of President and CEO of the Marshfield Clinic region of Sanford Health. “We will build on our shared legacy, creating a future where every person, regardless of zip code, has access to the best possible care.”
The combined health system, comprised of 56 hospitals and 425,000 health plan members, will focus on innovative care models, cutting-edge technology, and advanced clinical research. This merger positions the system to meet the evolving healthcare needs of rural communities across the upper 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.
To learn more, contact Jordan Shields at 312.506.3005 or jshields@juniperadvisory.com.
About Marshfield Clinic Health System
Marshfield Clinic Health System is an integrated health system whose mission is to enrich lives through accessible, affordable compassionate healthcare. Marshfield 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
Headquartered in Sioux Falls, South Dakota, Sanford Health is the largest rural health system in the United States, dedicated to transforming the healthcare experience and providing access to world-class healthcare in America’s heartland.
About Juniper Advisory
Juniper is a specialized investment banking firm focused exclusively on nonprofit 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.