Wauwatosa, Wis.-based Froedtert Health plans to buy a minority stake in Manitowoc, Wis.-based Holy Family Memorial Medical Center.
The two parties signed a letter of intent to explore a deal last week.
Under the deal, Holy Family Memorial will continue to operate as a locally led and managed health network.
The transaction is expected to enhance Holy Family Memorial's ability to provide healthcare services. Froedtert is expected to deliver long-term clinical and financial commitments.
"We were gratified by the interest HFM received from several respected, regional health systems regarding partnership opportunities to enhance HFM’s long-term ability to support the health and wellness of our community and their excitement about HFM’s value proposition," said Brett Norell, president and CEO of Holy Family Memorial. "We are excited to move forward and continue discussions with Froedtert Health to build on our established collaborative efforts with them."