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Essentia Health pulls out of merger with Marshfield Clinic over poor finances

by John R. Fischer, Senior Reporter | January 10, 2024
Business Affairs

One of a few large independent nonprofit medical clinics in the U.S., Marshfield Clinic employs over 12,000 individuals, including 1,600 providers across 170 specialties. It cares for patients in Wisconsin and upper Michigan and has a health plan and research and education programs. It is a charitable corporation under Wisconsin law.

" We will continue to seek opportunities for collaboration as two mission‐driven, integrated health systems dedicated to sustainable rural healthcare,” said Essentia.

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While supported by local leadership, healthcare workers were skeptical about the deal, according to the Star Tribune.

In a statement, the Minnesota Nurses Association (MNA), which represents union nurses at several Essentia Health facilities, said the merger would have potentially increased costs while eliminating jobs. " The defeat of this planned merger is a win against the further corporatization of our healthcare system."

In July, another merger that would have affected Wisconsin patients, between Fairview Health Services, in Minnesota, and Sanford Health, in South Dakota, was also called off after the two failed to gain support from key Minnesota stakeholders.

An additional one announced in July between St. Luke's, in Duluth, and Wausau-based Aspirus Health is still underway.

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