The two organizations, which recently signed an LOI, hope to complete the merger in early 2024.
Aspirus Health, a nonprofit health system based in Wausau, Wisconsin, and St. Luke's, a nonprofit health system based in Duluth, Minnesota, announced this week that the two organizations have signed a letter of intent to come together as a single organization.
Through the deal, which the organizations are calling an "affiliation," St. Luke's and Aspirus Health would combine to create a 19-hospital system, hoping to expand access to care across northeastern Minnesota, northern and central Wisconsin, and the upper peninsula of Michigan.
St. Luke's, which serves a footprint across northeastern Minnesota, northwestern Wisconsin, and the upper peninsula of Michigan, currently has 2 hospitals, over 40 primary and specialty care clinics, and 2 pharmacies. Aspirus, which serves a footprint throughout Wisconsin and upper Michigan, currently has 17 hospitals, 75 clinics, home health and hospice care, pharmacies, critical care and air medical transport, medical goods, nursing homes, and a large network of physicians, as well as a health plan for Wisconsin residents.
According to the organizations, the affiliation between the "like-minded" systems will combine their assets and improve and expand healthcare services, increase collaboration and investments, provide growth opportunities, and extend the Aspirus Health Plan's offerings to Minnesota residents.
According to a FAQ page about the deal, the organizations say the merger won't increase costs for patients: "Aspirus has a proven track record of keeping costs lower than most other health systems in Wisconsin, and this has continued to occur when it affiliates with other health systems."
The deal's next steps include a definitive agreement, due diligence, regulatory review, and approvals. The systems hope to complete the merger in early 2024.
Health System Leader Statements:
"We envision a future where access to excellent health care is easier and more seamless for patients. Aspirus has a history of being nimble, innovative, and forward-thinking in how we deliver care for the communities we serve," Matthew Heywood, president and CEO of Aspirus Health, said in a statement. "We welcome the opportunity to expand into Minnesota with St. Luke’s and look forward to learning from one another and building upon our collective strengths to benefit our teams and patients."
"From our founding days in 1881, St. Luke's has remained patient-focused above all else. Joining forces with Aspirus Health enables us to expand access and better support clinical staff to reach even more patients," Nicholas Van Deelen, MD, Co-president/CEO and CMO for St. Luke's, said in a statement. "The like-minded missions of St. Luke’s and Aspirus are rooted in serving people — our patients and the people who care for our patients. It is with people in mind that we make this bold move to grow in a way that maintains our exceptional quality and patient experience."
"Evolving community needs require us to find new and innovative approaches to delivering care. The strength of Aspirus Health will enable St. Luke's to accelerate investment in our communities and expand our impact faster than we can on our own," Eric Lohn, Co-president/CEO and CFO for St. Luke's, said in a statement. "Joining with Aspirus Health will benefit our patients, our staff and our broader network. It will bring new ideas and build a best-in-class care network that people can count on for generations to come."
Melanie Blackman is a contributing editor for strategy, marketing, and human resources at HealthLeaders, an HCPro brand.