Sanford Health and Marshfield Clinic Health System have signed a merger agreement, the health systems announced on Wednesday, after first revealing their intent to combine in July.
The systems said the combining would enable them to significantly improve the quality of care available to people living in the rural Midwest. Should the merger complete, the combined health system's revenue would be about $10 billion.
Sanford is the largest rural health system in the United States, including 45 hospitals, 211 clinics and more than 160 senior living centers. The Sioux Falls, South Dakota-based provider employs 2,900 physicians and advanced practice providers.
Marshfield, meanwhile, has 60 clinics, 11 hospitals and a children's hospital. It employs more than 1,700 providers, according to the announcement.
Each also operates a health plan, and combined membership would top 425,000, the health systems said.
“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, in the press release. “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.”
The systems said that together they intend to develop new and innovative care delivery models, lean on innovative technology, enhance research efforts and strengthen training programs for future clinicians.
“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, in the release. “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.”
The deal is expected to close by the end of this year.