Duluth, Minn.-based St. Luke's and Wausau, Wis.-based Aspirus Health have signed a definitive agreement to form a 19-hospital system with more than 130 outpatient locations and 14,000 employees.
The proposed transaction aims to increase access to rural healthcare and advance care quality across northeastern Minnesota, northern and central Wisconsin and Michigan's Upper Peninsula.
Under the terms of the agreement, Aspirus will invest at least $300 million over eight years to fund St. Luke's strategic projects and commit to implementing Epic within 24 months of the transaction closing. Aspirus Health Plan will also expand into St. Luke's service area within two years of closing.
"With the challenges facing the healthcare industry, including St. Luke's, we believe that now is the time to affiliate," Eric Lohn, St. Luke's co-president/CEO and CFO said in an Oct. 16 news release. "We are confident that Aspirus is the right partner to help us further grow and continue providing the best level of care."
St. Luke's six unions signed letters stating that they believe this affiliation is in the best interest of their members and the community. The transaction would honor all physician, labor and union contracts, and retain, integrate and provide more opportunities to St. Luke's employees, according to the health systems.
The combined system, which would include 1,300 employed physicians and advanced practice clinicians, will have headquarters in Wausau and maintain a corporate office in Duluth. Pending regulatory approvals, the transaction is expected to be completed in spring 2024.