Partnerships announced last fall to create medical campuses in Oshkosh and Fond du Lac fostered conversations that led to merger plans announced April 11 by ThedaCare and Froedtert Health.
“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 Dr. Imran Andrabi, ThedaCare president and CEO. “We found the right match.”
The organizations have an existing partnership, which includes the Medical College of Wisconsin, and had announced in October intentions to create two new “neighborhood” hospitals with a total investment of $110 million.
“Both of our organizations have deep, long-standing ties in the communities we serve,” said Cathy Jacobson, president and CEO of Froedtert Health. “This is a Wisconsin-based, Wisconsin-led organization going forward.”
Staff at ThedaCare was informed Tuesday morning of the intention to merge in meetings held just prior to, or simultaneously with, the press conference. There was no announcement of where the merged organization will be headquartered or if there will be a new name.
“Very quickly we realized that the name Froedtert Health and ThedaCare are trusted names in our communities,” said Jim Kotek, the chair of ThedaCare’s board of trustees. “We need to figure out ways for those names to continue going forward.”
Combined, Froedtert and ThedaCare operate 18 hospitals with combined revenue of more than $4 billion. ThedaCare has hospitals in Neenah, Appleton, Berlin, New London, Shawano, Waupaca and Wild Rose. Froedtert has a teaching hospital for the Medical College of Wisconsin, a hospital in Wauwatosa and nine other hospitals in the Milwaukee suburbs.
The combined organization will have more than 3,100 physicians. Andrabi said the merger will provide opportunities to educate the next generation of health care providers and Jacobson added it should help bring more world-class talent to Wisconsin.
“It enables us to attract the best talent and retain the best talent in our communities,” Andrabi said.
The combined organization will be governed by a parent board composed of representatives of both organizations. The initial board will have 18 members, including the president and CEO of Froedtert Health, and the president and CEO of ThedaCare. The initial board chair will be Jud Snyder, Froedtert Health’s current vice chair and chair-elect. The initial vice chair will be Jim Kotek, ThedaCare’s current board chair.
Following the launch of the combined health system, Jacobson will initially assume the role of CEO, and Andrabi will serve as president. After a six-month transition period following the launch of the combined health system, Jacobson will retire from the organization. Andrabi then will assume the role of president and CEO of the combined organization.
“By coming together with ThedaCare and continuing to invest in our partnership with the Medical College of Wisconsin, we have the ability to offer every aspect of health care to our communities in a more seamless, coordinated approach,” said Jackie Fredrick, chair of Froedtert Health’s Board of Directors.
Several key leaders of both organizations will also elevate to serve as executive officers of the combined organization:
- Thomas Arquilla, chief strategy officer of ThedaCare will serve as chief growth officer.
- Scott Hawig, executive vice president of finance, chief financial and administrative officer and treasurer of Froedtert Health will serve as chief financial officer.
- David Olson, chief business development officer of Froedtert Health will serve as chief business development officer.
- Ian Schwartz, MD, executive vice president and chief clinical officer of Froedtert Health will serve as chief clinical officer.
- Mark Thompson, chief operating officer and chief financial officer of ThedaCare will serve as chief transformation investment officer.
The full executive leadership team, as well as regional leadership structures, will be identified prior to the execution of the definitive agreement.
Over the next several months, Froedtert Health and ThedaCare will work toward refining the details of a definitive agreement. The goal is to launch the combined health system by the end of this calendar year. To learn more, visit WIcareWIroots.com, an informational site dedicated to this process.
