Marshfield Clinic Health System and Essentia Health integration plan falls through

MARSHFIELD − The potential integration between Marshfield Clinic Health System and Essentia Health has ended after two years of discussions.

According to a press release Friday morning from both companies, they chose not to move forward with the proposed integration, and after two years of discussions around how both organizations could work together to combine unique strengths, they decided merging now was not the right decision for each organization, their colleagues and patients.

The release said both companies would look for ways to collaborate in the future, as both health systems focus on sustainable rural health care.

About six months ago, Marshfield Clinic Health System and Essentia Health had announced their integration plans were moving forward and that the two companies had entered into an agreement to form a new regional health system across Wisconsin, Michigan, Minnesota and North Dakota. They said the move still needed regulatory approval but they were on track to integrate by the end of 2023.

This is the second time in just over four years Marshfield Clinic Health System has been in merger discussions that failed. In December 2019, Gundersen Health System and Marshfield Clinic Health System decided to remain separate companies after several months of discussions to integrate.

Essentia Health's CEO Dr. David Herman said he appreciates the relationships built with the Marshfield Clinic Health System providers, staff and leaders as they explored the opportunity.

"Moving ahead, Essentia continues to focus on building innovative partnerships and transforming care for our communities," Herman said. "As a strong, growing organization, we are guided by our mission to make a healthy difference for those we are privileged to serve."

Marshfield Clinic Health System's interim CEO Dr. Brian Hoerneman said both organizations are high-performing, well-respected and community-focused, and those shared qualities were why they were looking into integration.

"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," Hoerneman said. "Our commitment to continually enhance the level of care we provide remains firmly in place as we look to the future."

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Contact Caitlin at cshuda@gannett.com or follow her on Twitter @CaitlinShuda.