Duluth’s Essentia Health to merge with Marshfield Clinic of Wisconsin

Duluth-based Essentia Health says it has an agreement to merge with Marshfield Clinic, a nonprofit hospital and clinic operator based in Central Wisconsin.

The health systems announced the deal Thursday without specifying a headquarters location, although Dr. David Herman, the current chief executive at Essentia, will serve as CEO of a new parent company.

Dr. Susan Turney, the CEO at Marshfield Clinic, previously announced plans to step down this fall.

The merger, which will create a four-state health system, should conclude by year's end pending regulatory approval, according to a news release that did not mention financial terms. The health systems said in October 2022 that they were discussing a combination.

"We are both physician-led organizations with an unwavering commitment to the health of rural communities," Herman said in a statement. "Our complementary capabilities will allow us to learn and share with one another to better achieve our collective mission."

Essentia Health is Duluth's largest employer with about 15,000 workers. The health system includes 78 clinics and 14 hospitals across Minnesota, North Dakota and Wisconsin.

Marshfield Clinic employs more than 12,000 employees. It operates 11 hospitals as well as 60 clinic locations across Wisconsin and the Upper Peninsula of Michigan.

"While work remains to finalize our new relationship, this is another positive step in our journey to define the future of health care, and to fundamentally transform rural health care in America," Turney said in a statement.