Editor’s note: This story was updated at 10 a.m. Monday, Jan. 8, 2024 with additional information.
Marshfield Clinic Health System and Minnesota-based Essentia Health said Friday they are no longer moving forward with their merger.
The two said in a statement that joining forces “at this time is not the right path forward for our respective organizations, colleagues and patients.” Instead, they’ll continue to seek opportunities for collaboration.
“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,” interim CEO Dr. Brian Hoerneman said. “Our commitment to continually enhance the level of care we provide remains firmly in place as we look to the future.”
Marshfield Clinic said in October 2022 it was exploring a merger with Essentia. Last summer, the two entered an agreement to form a new regional health system spanning four states.
Members of the public were split at a fall public hearing in Duluth on the planned merger. Minnesota Attorney General Keith Ellison’s review of the deal was ongoing until the two parties decided not to pursue it further, his spokesman said Friday.
“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,” Essentia Health CEO Dr. David Herman said in a joint statement with Marshfield Clinic. “Moving ahead, Essentia continues to focus on building innovative partnerships and transforming care for our communities.”
In a separate statement, Essentia said that Marshfield Clinic’s financial situation “was the primary factor in our decision to end discussions,” the Duluth News Tribune reported Friday.
In 2019, Marshfield Clinic explored a merger with Gundersen Health System, with both organizations electing to remain independent at the time.
Gundersen has since combined forces with Bellin Health.
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