The system, which now operates as Sanford Health, also comprises two fully integrated health plans, Sanford Health Plan and Security Health Plan, along with 4,500 providers, around 56,000 employees, and research institutions and specialty pharmacies.
Becker’s connected with Bill Gassen, president and CEO of Sanford Health, to discuss the implementation process, challenges, strategies and plans around the merger.
Editor’s note: responses have been lightly edited for length and clarity.
Q: What were some of the biggest challenges faced during the Sanford, Marshfield Clinic merger process? How were they addressed to ensure a successful integration?
Bill Gassen: In today’s health care environment, collaboration and partnership are becoming more common. As we explored a potential partnership, it became clear that our two health systems share similar cultures, values and visions for the future, along with the vital role physician leadership plays in each of our organizations.
The Jan. 1 finalization of our partnership is the first chapter in our journey together. Now that our combination is complete, we have begun the complex process of integrating our systems, processes and cultures to create a unified organization, which will continue throughout the year. This process also includes supporting Marshfield’s financial turnaround plan to ensure long-term sustainability. Leaders across the organization are already engaged in the integration process, and employees at all levels will play a vital role in shaping the success of this integration.
Q: How does Sanford Health plan to integrate its technologies and innovations into Marshfield Clinic operations while maintaining high-quality care across the expanded 56-hospital system?
BG: This partnership allows us to bring more resources, expertise, and innovation to patient care. Together, we can better leverage the full promise of technology, including virtual care, digital health, data analytics, AI and genomic medicine to advance the health of our communities.
For example, as part of Sanford Health’s $350 million virtual care initiative, our combined system will be able to expand access to primary care providers, specialists and sub-specialists through virtual capabilities, reaching more patients in the Marshfield region. Virtual care is one of the most important tools we have to address workforce shortages in rural areas. We look forward to embracing all of the new possibilities that lie ahead.
Q: Does Sanford Health have any plans for future acquisition or partnerships?
BG: We remain focused on making the right strategic partnership decisions today to serve our communities for generations to come. The challenges facing the health care sector, especially in rural areas, require us to think differently about what we do today to meet the needs of our communities tomorrow.
Over the last decade-plus, Sanford Health has combined with care delivery organizations across America’s heartland, strengthening access, quality and sustainability for the rural communities we serve. We have invested more than $1.5 billion to bring world-class care to these communities, including expanded access to specialty care and state-of-the-art facilities, and strengthened provider recruitment.
These combinations have solidified permanence in the communities we serve. During a time when the health care sector is facing challenges on every front, financial sustainability is more important than ever for the patients and communities served by nonprofit health systems.
We are excited to continue building on this track record now that we’ve officially completed our merger with Marshfield Clinic Health System. Together, we will reimagine the future of local, patient-centered nonprofit health care by expanding services, enhancing access and harnessing innovative technologies to improve the health of our communities.
Q: How will Sanford Health Plan and Security Health Plan differentiate their Medicare Advantage offerings from larger players in rural markets? Where do you see the biggest opportunities for M&A growth?
BG: Working together, Sanford Health Plan and Security Health Plan will deliver better value to more members by harnessing our complementary capabilities as a fully integrated health system. We will be able to drive affordability and enhance patient and member outcomes through broader population health initiatives, value-based care programs and new, innovative care delivery models.
As smaller regional provider-led plans, Sanford Health Plan and Security Health Plan understand the unique needs and preferences of the rural communities we serve. We are intentional about providing a high-touch, tailored experience for the members we serve, which is reflected in quality metrics. For example, Sanford Health Plan’s Medicare Advantage plan is among the highest-rated MA plans in the nation, earning a 4.5-star rating from CMS for the second consecutive year, a reflection of member satisfaction. When Sanford Health Plan was designing its Medicare Advantage plan, the team worked in close partnership with health system colleagues to jointly design a Medicare Advantage plan that circumvents the abrasion and pain points encountered with other payers. As a result, Sanford Health Plan’s Medicare Advantage denial rate is significantly lower – less than half of the national average. For the few services that may require prior authorization, the turnaround time is less than 24 hours.
We are focused on harnessing growth opportunities that allow us to expand access to more personalized, comprehensive and streamlined care and coverage, particularly for rural communities. During a time of rapid disruption in the payer space, we will continue to pursue the right strategic growth opportunities that draw on our strengths and niche in rural health care. We know today’s consumers are expecting more options and a different, more seamless experience from their health plan. At the same time, providers are seeking alternative relationships with payers. These market dynamics position us well for both organic and inorganic growth opportunities.
