Marshfield Clinic
MARSHFIELD, WI (WSAU) — There will be no merger between Marshfield Clinic Health System and Duluth, Minnesota-based Essentia Health after all.
In a joint statement on Friday, the organizations said they have ended talks, saying “a combination at this time is not the right path forward for our respective organizations, colleagues and patients.”
“Essentia Health and the Marshfield Clinic Health System are high-performing, well-respected, community-focused organizations. Those similarities served as the basis for efforts toward a combination. As we now move our separate ways, Marshfield Clinic looks forward to advancing our 100-year legacy of providing compassionate and accessible care to the communities we serve. Our commitment to continually enhance the level of care we provide remains firmly in place as we look to the future,” says MCHS Interim CEO Dr. Brian Hoerneman in a press release.
The announcement ends nearly two years of discussions. The sides formally announced a “memorandum of understanding” to hold merger talks in October 2022. Last July they signed an integration agreement, which was announced as the next step in the process. The deal was expected to close in early 2024.
Details of what led the talks to break down were not disclosed. Essentia Health CEO Dr. David Herman added that he “appreciates the relationships we’ve built with the skilled Marshfield Clinic providers, staff, and leaders who share our dedication to excellent care. Moving ahead, Essentia continues to focus on building innovative partnerships and transforming care for our communities. As a strong, growing organization, we are guided by our mission to make a healthy difference for those we are privileged to serve.”
RELATED: Marshfield Clinic, Essentia Health Sign Integration Agreement
The proposed merger would have created a single health network stretching from North Dakota to Michigan’s Upper Peninsula, covering some two million people. The network would have featured more than 175 clinics and hospitals with more than 3,500 providers.
Last November Marshfield Clinic announced it was cutting pay for leadership-level positions and pausing company contributions to employee retirement plans. Those moves were made to help the system weather “financial challenges,” according to a statement.
Comments