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Froedtert Health, ThedaCare to merge into $5 billion, 18-hospital system

by John R. Fischer, Senior Reporter | April 14, 2023
Business Affairs
Froedtert Health and ThedaCare are merging into an 18-hospital system. (Photo courtesy of Froedtert Health)
Wisconsin health systems Froedtert Health and ThedaCare are intending to merge into an 18-hospital system valued at nearly $5 billion before the end of the year.

The two, whose operations do not overlap regionally, currently have a quaternary partnership that includes the Medical College of Wisconsin. They announced the deal on April 11, saying that it will allow them to close care gaps, recruit and retain clinicians and staff members, and develop innovations to better meet patient needs.

Based in Milwaukee, Froedtert is made up of 10 hospitals, 2,100 providers and 45 other care locations via its partnership with the Medical College of Wisconsin, and has an annual revenue of just over $3.4 billion, as of June 2022.

Having been around for 114 years, ThedaCare, which is based in Neenah, has 180 points of care, including eight hospitals, run by approximately 7,000 providers and staff who care for over 650,000 residents across 17 counties in Northeast and Central Wisconsin. Its annual revenue was nearly $1.2 billion as of December 2021.

The combined organization will be governed by a parent board of members from both, including two members who serve on the boards of the Medical College of Wisconsin and Froedtert Health concurrently.

“By coming together with the state’s leader in regional community health, our combined organization will be poised to meaningfully address health equity and disparities, enhance access to a broader array of services and make it easier for patients to navigate the healthcare system,” said Cathy Jacobson, president and CEO of Froedtert Health, in a statement.

Through their quaternary partnership, the two were already working to improve access to advanced medicines and create two health campuses in Wisconsin’s Fond du Lac and Oshkosh communities.

Together, Froedtert and ThedaCare say they will provide better and quicker access to high-quality care, as well as reduce care disparities among urban, suburban and rural communities.

Both will retain their existing brand names. The new initial board will have 18 members, including the presidents and CEOs of Froedtert and ThedaCare. The chair will be Jud Snyder, Froedtert Health’s vice chair and chair-elect, and the vice chair will be Jim Kotek, ThedaCare’s board chair.

Jacobson will be CEO for the first six months, with ThedaCare president and CEO Dr. Imran Andrabi, FAAFM, serving as president. After this time, Jacobson will retire, and Andrabi, who has 30 years of medical, operational and strategic experience, will become president and CEO.

The organizations will spend the next several months ironing out the details of the agreement.

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