Aspirus and St. Luke’s Complete Affiliation
Aspirus Health, based in Wausau, Wisconsin, and St. Luke’s, based in Duluth, Minnesota, have completed an affiliation to create a comprehensive health care system. For residents of northeastern Minnesota, northern and central Wisconsin, and the Upper Peninsula of Michigan, the system will advance the quality and accessibility of care for patients and build thriving communities. The milestone caps a nine-month process since Aspirus and St. Luke’s announced a letter of intent to affiliate in July 2023.
Aspirus and St. Luke’s have worked diligently since announcing the letter of intent, including signing a definitive agreement, completing due diligence and participating in a public forum with the Minnesota Attorney General in Duluth last fall.
Starting today, the combined organization will operate 19 hospitals and 130 outpatient locations with nearly 14,000 team members, including 1,300 employed physicians and advanced practice clinicians across Minnesota, Wisconsin and the Upper Peninsula. The system will operate headquarters in Wausau and maintain a corporate office in Duluth.
Today’s deal close also finalizes commitments made by Aspirus in the definitive agreement process, including:
- Investing at least $300 million over eight years to fund St. Luke’s strategic projects.
- Implementing Epic and other standard systems to promote integration and efficiency within 24 months.
- Expanding Aspirus Health Plan into the St. Luke’s service area within two years to promote coordinated, cost-efficient and effective delivery of health care services to its members.
Aspirus Health and St. Luke’s patients, members and communities will continue to receive exceptional care from the teams they know and trust at the combined organization.
By aligning our organizations, Aspirus and St. Luke’s are confident that both our communities and employees will experience significant benefits, such as:
- Affiliation with a like-minded system that will build upon and strengthen the cultures and success of both organizations.
- Our combined organizations will preserve, improve and even expand vital local health care services, while focusing on maintaining high-quality care, providing exceptional patient experiences and maximizing value for patients.
- This will enable increased collaboration and further investments in our infrastructure and people.
- We will provide growth opportunities for our workforce and honor existing employment and union and labor contracts.
- We will build on our efforts to attract and retain a pipeline of high-quality residents, physicians, APCs, nurses and other health care professionals.
- Patients will also have access to competitive health insurance plans in Minnesota via the Aspirus Health Plan.
Quality Care for Patients and Community Members Remains
As this affiliation process continues to evolve, St. Luke’s and Aspirus patients will continue to receive exceptional care from the physicians and teams they know and trust. Nothing changes in how patients or health plan members receive care at either organization.
Upon a definitive agreement and deal close, St. Luke’s will remain a major care delivery hub for the region, a role that will benefit from the successful care model Aspirus has developed through its current footprint.
Frequently Asked Questions (FAQs):
Is Aspirus going to change how St. Luke’s is run?
Aspirus and St. Luke’s have very collaborative cultures, and that characteristic will continue.
Aspirus and St. Luke’s have a shared focus on improving patient care. With this in mind, together we will solve challenges in Michigan, Minnesota and Wisconsin to be a champion for the future of health care.
Will St. Luke’s hospitals keep their names?
The Aspirus brand will eventually be reflected across the full system. Those details are expected to be announced early this summer.
Will St. Luke’s change where its corporate offices are located?
No. St. Luke’s will become a major tertiary care hub for Aspirus and will need to be supported by regional corporate functions in Duluth.
Is Aspirus planning to move its corporate offices in the future?
No. Aspirus headquarters will remain in Wausau.
Can patients still use the same physicians and care facilities?
There will be no impact on patients, the physicians they see or the facilities where they receive care.
Will my insurance still be accepted?
There will be no changes to patient insurance in the near term.
Will care for patients change?
Joining together allows our combined health systems to maintain and enhance their exceptional quality and patient experience.
Will my health care be more expensive now?
Aspirus has a proven track record of keeping costs lower than most other health systems in Wisconsin, and this has continued when Aspirus affiliates with other health systems.
How is it financially viable to buy another hospital?
This agreement is not a purchase; the organizations are combining, with Aspirus being the successor.
This affiliation is good for both systems to enable improved scale and cost efficiencies while enhancing care delivery, which is required in this challenging environment.
Our regulatory approvals from Minnesota, Wisconsin and federal agencies, as well as community support shared at public meetings, are a testament to our combined organization’s strength and plan to better serve our patients and communities.
Will my health care be more expensive now?
Aspirus has a proven track record of keeping costs lower than most other health systems in Wisconsin, and this has continued when Aspirus affiliates with other health systems.
How is this different from other hospital mergers and acquisitions that raised costs and lowered quality?
Aspirus has a proven track record of keeping costs lower than most other health systems in Wisconsin, and this has continued when Aspirus affiliates with other health systems.
What are the financial terms?
Aspirus will invest at least $300 million over eight years to fund St. Luke’s strategic projects, while continuing to develop and invest in existing business units.
Is this an acquisition?
This agreement is not a purchase; the organizations are combining, with Aspirus being the successor.
This affiliation is good for both systems to enable improved scale and cost efficiencies while enhancing care delivery, which is required in this challenging environment.
What specific investments has Aspirus agreed to fund?
Aspirus will make several capital investments in St. Luke’s care facilities, including committing capital to expand care offerings for the St. Luke’s network and capital for strategic investments, which will include maintaining the shared residency program St. Luke’s has with the University of Minnesota Medical School in Duluth. The affiliation will also help each organization better recruit talent, given the expanded services, sophistication and opportunities that will exist within the combined organization.
Is Aspirus considering other acquisitions?
Aspirus has been thoughtful, patient and strategic when choosing the right partner to benefit the communities we serve. Partnering with St. Luke’s will help ensure a sustainable, accessible and affordable path to care.
How will Aspirus make St. Luke’s a sustainable hospital?
Sharing medical expertise and knowledge among Aspirus and St. Luke’s providers will give opportunities to collaborate, expand best practices and build stronger teams. Through this agreement, Aspirus will also be able to further support local medical education, which is a key driver in securing the necessary number of physicians, nurses and other health care workers in an organization.
How will combining create strong, unified technology platforms?
By coming together, we intend to have greater efficiency through common IT platforms, such as the Epic electronic health record. Doing so will enhance clinical care, maximize value and support expanded collaboration.
How will a health plan maximize value for patients and employers?
Introducing the Aspirus Health Plan will provide new health insurance options for patients and employers while enabling the combined organization to provide better care coordination and efficiency for patients.