Marshfield Medical Center in Beaver Dam will become part of UW Health later this year, expanding UW’s presence in central Wisconsin.
Madison-based UW Health announced July 13 it had reached a deal to acquire the Beaver Dam hospital, which also includes a nursing home called Hillside Manor and independent living apartments for seniors in Dodge County. It also operates primary care clinics in Columbus, Horicon and Waupun and two assisted living facilities, according to a news release from UW Health.
UW Health did not disclose the dollar value of the transaction.
The Beaver Dam hospital is one of about a dozen previously part of the Marshfield Clinic Health System. The health system, which has clinics and hospitals across central, northern and western Wisconsin, became part of South Dakota-based Sanford Health, following a merger last year.
UW Health’s acquisition will allow the health system to expand its presence in Dodge County and the region and bring more patients into the health system.
The deal has been under discussions for more than year, said Carey Gehl, chief strategy officer at UW Health, though UW Health’s interest in the Beaver Dam hospital goes back further.
“We had constantly been in conversation with the leadership there and certainly expressed our interest that if they ever found themselves in a situation of looking to join UW Health, we would be interested,” Gehl said.
UW Health’s core markets are in Madison and Rockford, Illinois, where its main hospitals are located, but the health system has clinics scattered throughout Wisconsin and northern Illinois. In 2024, UW Health opened a new medical center in the northeast corner of Madison near its East Madison Hospital, and it acquired a pediatrics practice in Beaver Dam, a complement to its longstanding primary care clinic in the town.
“We see a lot of demand for our services coming from that general direction,” Gehl said.
UW Health hopes the acquisition will expand access to health care for residents in Dodge County and surrounding areas.
It comes as rural hospitals warn of further strain on their budgets and financial instability as cuts to federal Medicaid spending start to unfold.
Sanford Health reported operating income of $210.9 million last year, an operating margin of 1.8%.
“We are proud of the care our teams have provided to communities across Dodge County, and we’re confident this next chapter will build on that strong foundation,” Brian Hoerneman, president and CEO of the Marshfield Clinic region of Sanford Health, said in the news release. “We’re committed to ensuring a seamless experience for patients, providers and staff.”
The deal will bring about 425 employees under UW Health, which does not expect any layoffs as a result of the transaction, Gehl said. In fact, UW Health plans to expand services at the Beaver Dam location.
UW Health has tapped Sue Erickson, a former CEO of UnityHealth Point-Meriter who retired in 2023, to help with the transition in an interim capacity, Gehl said.
UW Health plans to close on the transaction on Nov. 1, Gehl said. No regulatory approval is required, she said.
This article originally appeared on Milwaukee Journal Sentinel: UW Health reaches deal to acquire Marshfield hospital in Beaver Dam
Reporting by Sarah Volpenhein, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
USA TODAY Network via Reuters Connect
By Sarah Volpenhein, Milwaukee Journal Sentinel | USA TODAY Network
