MILWAUKEE — ThedaCare and Froedtert Health on Tuesday announced they will combine to form one health organization.

The two organizations said they signed a letter of intent “to come together as one organization to advance local health care for patients and improve health and the delivery of health care in Wisconsin.“

Officials from the organizations said the merger will help combat health disparities and inequities. The new health system will serve rural, suburban and urban areas of the state. Currently, ThedaCare tends to serve more rural communities, whereas Froedtert Health primarily sees urban and suburban patients. 

"We can apply some of those same learnings about how you reach different areas in urban Milwaukee as you do in rural Wisconsin... It's not the same to treat someone in urban Milwaukee as it is to treat someone in Brookfield, Wis., and we know that," Cathy Jacobson, the president and CEO of Froedtert Health, said. "We go into those communities. We talk to people in those commnuities... about what are the challenges about how you access health care?" 

Physically, the two individual organizations do not physically overlap when it comes to communities they care for. The new organization will benefit as it will have resources and knowledge from each current health system and be able to reach more people. 

Officials said the two organizations are not merging out of necessity, but because they believe combining will make them better. They said they believe their organizations complement one another and are stronger together, citing shared values.

The combined health system will have upward of 3,900 providers in its network, and officials said they plan to enhance recruitment and retention efforts. The goal is to close care gaps.

Currently, patients in either health system can continue to see their regular providers and will have access to the same services.

“Looking ahead, it is our goal that by coming together as one organization, we can offer comprehensive, coordinated high-quality health care services, from prevention to treatment of complex diseases and better meet patient needs through shared resources,” officials said.

During the transition process, both ThedCare and Froedtert Health said they will continue to work with the same insurance plans. After they combine this is subject to change.

The organizations will undergo a six-month transition; the combined organization will be Wisconsin-based. The exact headquarters’ location has yet to be determined.

“First and foremost, we want to play a part in making the lives of the people of Wisconsin better,” Jacobson said. “We will be Wisconsin-based and we will be led by people who work and live right here in Wisconsin. We believe we will be able to deliver value and innovative solutions to address the health care needs of our state.”

The combined organization will continue its work with the Medical College of Wisconsin “to bring together every aspect of care, including primary care, specialty care, the most advanced levels of care, clinical trials, graduate medical education and more.”

ThedaCare recently established quaternary partnership with the MCW and Froedtert Health. MCW and Froedtert Health has a long-standing partnership. Jacobson said the partnership between MCW and the new health system will be expanded through this merger. The partnership also aims to continue to grow academic medicine.

The new board will include current board members from both ThedaCare and Froedtert Health, as well as two members who serve on the boards of the Medical College of Wisconsin and Froedtert Health concurrently.

“We’re committed to moving forward with the shared governance structure,” said Jackie Fredrick, the chair of the ThedaCare board of directors. Fredrick is also the retired president CEO of Versiti and the BloodCenter of Wisconsin. “[The board will] represent the collective interests of the entire health system, prioritizing the needs of patients in our communities as number one, and to ensure the combined organization achieves its collective goals and is accountable to you and all of our communities.”

Upon combining, Jacobson will become CEO of the new, yet-to-be-named health system. Dr. Imran Andrabi, the current ThedaCare president and CEO, will serve as president. After six months, Jacobson said she plans to retire and Andrabi will take over as the CEO and president.

Jacobson said the two have a “shared vision for what this partnership can do and about improving health care in the state of Wisconsin.”

The goal is to launch the new health system by the end of the calendar year, but is contingent upon “completion of due diligence, negotiation of definitive agreements with customary pre-closing conditions, further Board approvals and regulatory approval of the transaction.”

The new health system will aim to provide “better and more seamless access to comprehensive, high-quality care when people are sick or injured and serving as a true partner in health to help keep people well.”

Updates about the new health system will be available, here. 

Courtny Gerrish contributed to this story.