Froedtert Health, ThedaCare Announce Merger Plans
The Wisconsin-based health systems signed a letter of intent to merge into one organization after years of partnership, including a joint venture to create two new health campuses.
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By - Froedtert Health and ThedaCare have signed a letter of intent to merge in hopes of creating a roughly $5 billion health system with 18 hospitals in Wisconsin.
The two Wisconsin-based non-profit health systems said in a joint announcement that combining the organizations will advance local healthcare by furthering the existing partnership between the two health systems. Froedtert and ThedaCare have established a quaternary partnership that includes the Medical College of Wisconsin and have a joint venture to create two new health campuses that include hospital and outpatient care services in Fond du Lac and Oshkosh.
“Both of our organizations have deep, long-standing ties in the communities we serve. Our Wisconsin roots have been instrumental in building creative solutions to meet our communities’ health needs,” Cathy Jacobson, president and CEO of Froedtert, said in the announcement. Jacobson has been tapped to become the new, unnamed health system’s CEO.
“By coming together with the state’s leader in regional community health, our combined organization will be poised to meaningfully address health equity and disparities, enhance access to a broader array of services and make it easier for patients to navigate the health care system. The Medical College of Wisconsin will continue to be an important partner in our work together,” Jacobson continued.
Based in Milwaukee, Froedtert is an integrated health network of 10 hospitals, over 2,100 providers, and 45 other locations, including its partnership with the Medical College of Wisconsin. Froedtert has an annual revenue of just over $3.4 billion as of June 2022 and has an AA rating from Fitch Ratings.
ThedaCare serves patients in northeast and central Wisconsin through its eight hospitals and over 170 other care locations. The health system employs approximately 7,000 providers and other staff members and delivers care to over 650,000 patients. ThedaCare saw about $1.2 billion in revenue during the fiscal year that ended on Dec. 31, 2021.
The health systems are not merging out of necessity, leaders from Froedtert and ThedaCare confirmed in a video announcement.
“We are alike in many ways, and our leaders and our boards have long been asking how we can accelerate our work to make a positive and lasting impact on our state,” said Imran A. Andrabi, MD, FAAFM, ThedaCare president and CEO.
“We have a shared vision for what we can do together to improve the health and well-being of the communities and be proactive partners in health. We are eager to start exploring how we can build a healthier, brighter future for Wisconsin,” added Andrabi, who will serve as president until Jacobson retires six months following the launch of the combined health system.
The health systems said they are refining the details of a definitive agreement to merge but hope to launch the combined health system by the end of this year.
