Foxconn Might Revise Its Wisconsin Plans, But Advocate Aurora Health Is Carrying On

Media reports indicate the Taiwanese technology giant may be changing its plans for a new factory in Wisconsin, putting its collaboration with Advocate Aurora Health in question.

Foxconn Technology Group is reportedly looking at revising its plans for a $10 billion plant in Wisconsin, a decision that could impact its technology collaboration with Advocate Aurora Health.

Reuters reported Wednesday morning that Foxconn was reconsidering plans to manufacture flat screen display panels at its campus in southeastern Wisconsin, citing the high cost of assembling the consumer product as well as steep labor expenses.

Instead of hiring a workforce composed of employees working in manufacturing, Foxconn now reportedly intends on bringing aboard primarily engineers and researchers, though the pace of its hiring has slowed recently. The Reuters report stated that the company is expected to only have around 1,000 workers hired by the end of 2020 and remains unsure if it will meet its overall 13,000 worker goal.

The news comes six months after the foreign tech giant agreed to a 'multi-faceted collaboration' with Advocate Aurora Health, one of the nation's largest health systems, to both improve patient outcomes and lower health costs for employers.

"Foxconn supports our relentless pursuit of safety and quality, and we look forward to exploring breakthrough connections to extend these offerings to consumers across environments," Jim Skogsbergh, CEO of Advocate Aurora Health, said in a statement at the time.

Related: Advocate Aurora, Foxconn Enter into Tech Collaboration

Additionally, Advocate Aurora Health announced plans in May to build a $250 million hospital in Mount Pleasant, Wisconsin, a move that many saw as courting a relationship with Foxconn and its sizable workforce. 

Rick Klein, chief business development officer for Advocate Aurora Health, told HealthLeaders in an emailed statement that the system remains committed to advancing its plans to expand healthcare access in southeast Wisconsin.

"Our decision to build and invest [in southeast Wisconsin] was made independent of any Foxconn pledge but informed by long-term projections of market dynamics and an opportunity to better serve the health care needs of this growing region," Klein wrote. "We look forward to being a strong community partner and valuable health care resource for many years to come."

Klein also addressed the future of the system's relationship with Foxconn in light of Wednesday's news.

"Our collaboration with Foxconn is centered on helping people live well, enhancing quality, expanding access and lowering costs," Klein wrote. "It is not our practice to comment on the evolving business model of partners, but instead focus on pursuing health care innovations and improving health outcomes."

In 2017, Foxconn announced plans for the "largest greenfield investment by a foreign-based company in U.S. history," a business move that won the company public admiration from President Donald Trump and then-Gov. Scott Walker, R-Wisc.

The deal was not without its skeptics, who criticized the nearly $4 billion worth of tax breaks and incentives promised to Foxconn for the plant project.