Local facility in limbo as merger fails

With the ending of merger talks between Marshfield Clinic Health System and Minnesota-based Essentia Health, the fate of a proposed Marshfield Clinic facility in Medford remains in limbo.

In spring 2022, Marshfield Clinic representatives announced plans to build an 18,100 square foot hospital facility in the city. Land was purchased and rezoned for it near the Hwy 64 entrance to the Medford Plaza and buildings were removed. Work was delayed however, as the Marshfield Clinic announced plans to enter into a merger with Essentia Health.

With the end of those merger talks, city officials have not received any updates from Marshfield Clinic over the status of the long-delayed project.

In a release on Friday, Marshfield Clinic representatives announced the end of the merger talks noting the two organizations have chosen not to move forward with the proposed integration. The release states: “Essentia Health and MCHS have engaged in meaningful discussion over the last two years about how our organizations could combine our unique strengths. We have decided that a combination at this time is not the right path forward for our respective organizations, colleagues and patients.

We will continue to seek opportunities for collaboration as two mission-driven, integrated health systems dedicated to sustainable rural health care. Our organizations have great respect for one another, and we each remain committed to strengthening the health of our communities as we deliver high-quality, compassionate patient care.”

“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,” said 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,” says MCHS Interim CEO Dr. Brian Hoerneman.

The financial health of Marshfield Clinic, which has stumbled in recent years, has been widely reported as being a major factor in the merger talk failures. Minnesota Public Radio reported that the Duluth -based Essentia said Marshfield Clinic’s financial situation was “the primary factor in our decision to end discussions.”