In a significant development for Wisconsin’s healthcare landscape, Froedtert Health and ThedaCare have officially concluded their merger process, set to become one unified organization starting January 1, 2024. The merger, first announced in April, has received approval from various regulatory bodies, including the Federal Trade Commission.
Both nonprofit health systems, Froedtert Health based in Milwaukee and ThedaCare in the Fox Valley, have combined revenues exceeding $4 billion. With a total of 18 hospitals and additional sites across southeastern, northeastern, and central Wisconsin, the merger aims to strengthen local healthcare and enhance collaboration with the Medical College of Wisconsin.
While Froedtert and ThedaCare plan to retain separate names for their facilities, the merger is expected to optimize resources and support the health needs of the communities they serve. The new organization’s operational details will continue to be refined through the coming year.
Cathy Jacobson, President and CEO of Froedtert Health, expressed enthusiasm, stating, “As a combined organization, we will continue to strengthen local healthcare, working closely with the Medical College of Wisconsin.”
Despite potential benefits for health systems, experts like Rachel Werner, a healthcare economist at the University of Pennsylvania, have raised concerns about the impact of mergers on prices. Werner noted that mergers tend to increase the prices paid by insurers for care without necessarily improving quality, resulting in higher costs for commercially insured individuals.
The Froedtert-ThedaCare merger is the latest in a series of hospital consolidations in Wisconsin, reflecting a broader trend in the healthcare industry’s consolidation over the past two decades.
