Essentia Health and Marshfield Clinic will no longer merge
Essentia Health and Marshfield Clinic Health System (MCHS) announced Friday the two organizations have chosen not to move forward with their proposed integration.
The health care groups have been in discussion over the last two years about how the organizations could combine.
In a press release announcing the decision, Essentia Health and MCHS said, “We have decided that a combination at this time is not the right path forward for our respective organizations, colleagues and patients.”
“As we’ve explored this opportunity, I appreciate the relationships we’ve built with the skilled Marshfield Clinic providers, staff and leaders who share our dedication to excellent care," says Essentia Health CEO Dr. David Herman. “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.”
“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,” said MCHS Interim CEO Dr. Brian Hoerneman in a statement.
The organizations said they have great respect for one another and remain committed to strengthening the health of their respective communities.
In May, Marshfield Clinic announced it was laying off 346 employees and eliminating 500 positions that had been unfilled.
More recently in November, the Marshfield Clinic Health System told employees its leadership team was taking pay cuts. The system's CEO and all Chiefs, Presidents, and Vice Presidents will take a 15 percent pay cut in the new year, while anyone with the title of director will have their pay reduced by ten percent.
At the time, a representative for Marshfield Clinic said the cuts were designed to stabilize the health system's finances without impacting patient care or access.
Marshfield Clinic has also been expanding its facilities in the Northwoods. Last summer, it finished a hospital expansion project in Minocqua. Around the same time, Marshfield Medical Center-Park Falls began a $35 million hospital replacement project.
Marshfield Clinic operates more than 60 locations in Wisconsin and U.P. including 11 hospitals and the Marshfield Clinic Research Institute.