Sanford Health and Marshfield Clinic Health System complete merger

On Jan. 2, 2025, a press release announced that Sanford Health, the largest rural health system in the U.S., headquartered in Sioux Falls, South Dakota, and Marshfield Clinic Health System, had completed their merger and are now one nonprofit integrated health system operating as Sanford Health, “marking the beginning of a new chapter for the future of rural health care.”
“Today’s 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. We are thrilled to welcome 13,000 new employees from Marshfield Clinic Health System to our Sanford family and look forward to embracing all of the new possibilities that lie ahead.”
Here in Merrill, the Marshfield Clinic Merrill Center will continue to operate as it has been. “At this time there are no changes at all, including the name, services offered, etc.,” said Jeff Starck, Senior Media Relations Specialist for Marshfield Clinic Health System. “Patients will continue to receive care from the same trusted providers at the same locations, with no immediate changes to their care experience.”
“The Marshfield Clinic Region is a new health services delivery region of Sanford Health that will continue to serve communities in Wisconsin and Michigan’s Upper Peninsula,” the media release said. “Additionally, each organization’s respective health plans, Sanford Health Plan and Security Health Plan, will continue current operations under a common management reporting and governance structure.”
“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. “I am excited about the opportunities ahead as our teams learn from each other and combine our complementary strengths, cultures, and missions. Together, 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 system will serve patients and communities across the upper Midwest, including South Dakota, North Dakota, Minnesota, Wyoming, Iowa, Wisconsin, and the upper peninsula of Michigan. The organization includes nearly 56,000 employees, 56 hospitals, 4,500 providers, two fully integrated health plans, specialty pharmacies, and nationally recognized research institutions. Sanford Health Plan and Security Health Plan will serve more than 425,000 members.
Additionally, the press release said:
• Dr. Brian Hoerneman will continue to lead the newly established region in his new role as Regional President and CEO. He is a native of Marshfield and a practicing emergency medicine physician.
• Sanford Health Plan and Security Health Plan will continue current operations under common management reporting and governance structures. The health plans will be led by Dr. Tommy Ibrahim, Executive Vice President and President and CEO of Sanford Health Plan. Krista Hoglund serves as Regional President and CEO of Security Health Plan and reports to Dr. Ibrahim.
• Physicians will continue to have a critical voice in the direction of the combined organization through Sanford Health’s robust physician governance structure. Like all of Sanford Health’s regions, the new Marshfield Clinic Region has a Physician Executive Council, which will feature Marshfield Clinic physician leaders. Three members of the Physician Executive Council will serve on the system’s Council of Governors (COG). These physicians are Jay Vedre, M.D., MPH; Kent Ray, DO, MSc; and Matt Thomas, M.D.
• Marshfield Clinic Health System (MCHS) will become a Region of Sanford Health. The Marshfield brand will continue to be predominant within the Marshfield Clinic Region.
• Three Marshfield Clinic Health System Board members have now joined the Sanford Health Board of Trustees. These new Trustees are Dr. George Brown, Thomas Wenzel, and Dr. Maureen McCausland.
• A regional board of community leaders is being established to govern the operations and strategy of the Marshfield Clinic Region.
An integration process is underway to create a unified organization. Patients will continue to receive care from the same trusted providers at the same locations, with no immediate changes. Moving forward together under the Sanford Health parent organization will bring more resources, expertise, and innovation to patient care in communities across the rural Midwest.
Marshfield Clinic Health System, now Marshfield Clinic Region of Sanford Health, is an integrated health system whose mission is to enrich lives through accessible, affordable compassionate health care. The health system serves Wisconsin and Michigan’s Upper Peninsula with more than 1,400 providers comprising 170 specialties, 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.