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Froedtert Health, ThedaCare plan to combine in Wisconsin
Froedtert Health and ThedaCare announced on Tuesday, April 11 that leaders from the two organizations have signed a letter of intent to come together as one organization.
MILWAUKEE - Froedtert Health and ThedaCare announced on Tuesday, April 11 that leaders from the two organizations have signed a letter of intent to come together as one organization. What does this mean for you? That depends on who you ask.
Froedtert Health and ThedaCare officials say the merger will make them better, but one Marquette University professor is a bit more skeptical.
"We didn’t do this because either one of us needs to find another partner, we did this because we think we found the right partner you know in terms of alignment," said Catherine Jacobson, Froedtert Health President and CEO.
Froedtert Health
Froedtert Health and ThedaCare say the merger will "provide better and more seamless access to comprehensive, high-quality care."
"We want to play a part and making the lives of the people of Wisconsin better. We will be Wisconsin-based, and we will be led by people who work and live right here in Wisconsin," Jacobson said.
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"It doesn’t surprise me from a business perspective that they want to make this decision," said Lisa Grabert, Marquette University College of Nursing visiting research professor.
Grabert spent 15 years in Washington, D.C. working on Medicare legislation.
"Many of these situations that have occurred in the past, it’s not really in the best interest of the patient," Grabert said.
Grabert said hospital consolidation makes hospitals less competitive.
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"When they negotiate with insurers, insurers have skewed table, and so they really don’t have the ability to negotiate when these types of large mergers are in place," Grabert said.
Grabert said that could leave you, the patient, paying more out of pocket.
Officials' statements
Cathy Jacobson, President and CEO of Froedtert Health
"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. 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."
Imran A. Andrabi, MD, FAAFM, ThedaCare president and CEO
"ThedaCare and Froedtert Health have a commitment to the people of Wisconsin. 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. 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."
Not a done deal
Just because Froedtert Health and ThedaCare say they are in the process of merging does not mean it is a guarantee. The state and the federal government must sign off on it. The Federal Trade Commission (FTC) has blocked hospital mergers in the past.