Sanford Health, based in Sioux Falls, South Dakota, and Marshfield Clinic Health System, headquartered in Marshfield, Wisconsin, entered a nonbinding Memorandum of Understanding to merge their operations, with an expressed goal of enhancing healthcare services in the rural midwest.

An 11-hospital system with 12,000 employees, Marshfield Clinic reported $3.1 billion in revenue during its 2023 fiscal year. Sanford, meanwhile, reported $7.2 billion in revenues.

The merger will create a system with nearly 56,000 employees, 56 hospitals, 4,300 providers, and integrated health plans serving over 425,000 members. Sanford Health Plan and Security Health Plan will play crucial roles in maximizing patient benefits.

Post-merger, the parent company will be Sanford Health, headquartered in Sioux Falls, with Marshfield Clinic Health System operating as a regional entity. Bill Gassen, CEO of Sanford, will lead the combined system, and Dr. Brian Hoerneman, interim CEO of Marshfield Clinic Health System, will lead the Marshfield region.

The combined entity aims to lead in integrated care, prioritize research on underrepresented populations, and ensure sustainable healthcare operations. Sanford Health has invested over $1.5 billion in the last decade to enhance healthcare access in South Dakota, North Dakota, Minnesota, and Iowa.

The new organization plans to improve patient outcomes through population health initiatives, innovative care models, and technology integration, including virtual care, digital health, data analytics, AI, and genomic medicine. Additionally, it will expand research capabilities, enhance clinical trials access, and support future physicians and caregivers through education programs.

The merger is expected to close by year-end, pending regulatory approval. Until then, Sanford Health and Marshfield Clinic Health System will continue to operate independently.

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