The two nonprofits had announced a possible 'merger of equals' about seven months ago.
Gundersen Health System, based in La Crosse, Wisconsin, and Marshfield Clinic Health System, based in Marshfield, Wisconsin, said Thursday that their discussions of a possible merger have ended without a deal.
The two nonprofit health systems had announced about seven months ago that they would explore a potential "merger of equals." But both leadership teams decided getting hitched wouldn't be the best path forward, the top executives for each organization said in a joint statement.
"This was an opportunity we had to explore. Yet, we have to make the right decision for our patients and for our organizations," said Gundersen CEO Scott Rathgaber, MD, in the statement.
"We each still have a commitment to delivering the best care possible to those we serve," Rathgaber added. "We will continue to improve the health of our communities, while working to reduce the cost of care and offering an outstanding experience for those in our care."
Marshfield Clinic CEO Susan Turney, MD, FACP, thanked Gundersen for engaging in the merger talks.
"Bringing two entities together of our size and scope is an incredibly complex process, and first and foremost in that process is making sure it was the best path forward for our patients, staff and communities," Turney said in the statement.
"While we mutually decided to remain independent, we will continue to execute our strategy of smart growth as we look for opportunities to ensure residents across rural Wisconsin have access to excellent health care close to home," she added.
Combining the two organizations would have formed a 13-hospital system with more than 100 clinics and more than 19,000 employees serving patients across Wisconsin, northeast Iowa, and southeastern Minnesota, the organizations said last May when they announced their potential merger. Although the markets served are contiguous, the geographic overlap is minimal, the CEOs said.
The joint statement released Thursday described the discussions as "productive" and "collaborative," and it noted that the two will continue to partner on current and future projects.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
The merger would have created a 13-hospital system serving patients in three states.
The two CEOs said in a joint statement that their decision was mutual.