What is new for Northwoods Drifter in 2026
The Marshfield Clinic Health System, facing significant financial challenges, recently announced a series of service reductions across its northern region. This decision comes in the wake of a failed merger with Essentia Health of Minnesota, a deteriorating financial situation, and a recent credit rating downgrade.
Overview
The closure of the Mercer Center, a key healthcare facility, marks a significant shift in the availability of healthcare services in the region. Patients will be redirected to primary care in Minocqua and other centers.
Phillips will see the discontinuation of Home Health and Hospice services. Minocqua faces the cessation of neurology and pulmonology services, attributed to provider vacancies.
Park Falls will experience a 90-day suspension of echocardiogram outreach, cardiac rehab, pulmonary rehab, and stress test services due to low patient volumes.
The Marshfield Health Care System (MCHS) has been downgraded by Fitch Ratings to BBB from BBB+. This reflects ongoing operational challenges and an unaligned cost base with variable revenues.
Fiscal year 2022 saw a significant drop in the adjusted operating EBITDA margin to -3.4 percent. Despite some improvement in FY23, financial challenges including reliance on contract nurses and inflationary pressures persist.
MCHS faces liquidity distress, having fully drawn on $170 million in lines of credit and engaged in discussions with banks for covenant waivers.
In response to the financial pressure, MCHS has implemented several initiatives to align expenses with revenue levels. These include revenue cycle optimization and labor productivity improvements, expected to contribute significantly to financial improvements.
Despite the current challenges, Fitch expects MCHS to see gradual improvement, with operating profit margins stabilizing around 6.5-7 percent by 2025.
The Marshfield Clinic Health System is at a crucial juncture as it navigates through financial difficulties and healthcare service restructuring. The closure of Mercer Center and other service cuts underscore the challenges faced by rural healthcare providers. As MCHS implements its financial and operational strategies, the healthcare landscape in northern Wisconsin continues to evolve.
This post aims to provide up-to-date information on the changes and challenges within the Marshfield Clinic Health System. For more insights and updates on healthcare services in northern Wisconsin, stay tuned to our blog.
Written by
Mike has been coming up or living in the Northwoods since his childhood. He is also an avid outdoorsman, writer and supper club aficionado.
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