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St. Luke's, Aspirus Health complete 19-hospital merger

by John R. Fischer, Senior Reporter | March 07, 2024
Business Affairs
St. Luke's ER entrance (Photo courtesy of St. Luke's)
St. Luke’s, in Duluth, Minnesota, has merged with Aspirus Health in Wisconsin, providing the healthcare system with a total of 19 hospitals and 130 outpatient locations caring for residents in northeastern Minnesota, northern and central Wisconsin, and the Upper Peninsula of Michigan.

The newly combined system will operate out of Wausau, Wisconsin, and retain a corporate office in Duluth. St. Luke’s is made up of two hospitals, one being its namesake and the other being Lake View, and has over 40 primary and specialty care clinics and two pharmacies. It is staffed with 14,000 team members, including 1,300 employed physicians and advanced practice clinicians.

Together, they say they will be able to share medical knowledge and resources for better care coordination and increase access to care for a broader region of patients.

As part of the agreement, which started last summer with a letter of intent, Aspirus has agreed to invest at least $300 million over eight years to fund St. Luke’s strategic projects and will implement Epic and other standard systems to promote integration and efficiency. It also will retain, integrate, and provide additional opportunities to all St. Luke’s employees and honor all physician, labor, and union contracts. Additionally, Aspirus will expand into St. Luke’s Service Area within two years to establish coordinated, cost-efficient, and effective healthcare service delivery for members.

“Patients can continue seeing their current providers to receive the high-quality, compassionate care they always have. The clinic locations, phone numbers, and how you interact with us on a day-to-day basis will not change. As we make enhancements over the coming months, we will keep our patients and communities informed,” said St. Luke’s co-president Dr. Nicholas Van Deelen in a statement.

Both nonprofit organization boards unanimously approved the deal, as did all six unions at St. Luke’s. Aspirus and St. Luke’s signed a definitive agreement, completed due diligence as part of the process, and participated in a public forum with the Minnesota Attorney General’s office in Duluth last fall to discuss with the state government and the people how the deal would benefit patients, and address any concerns about it.

All necessary governmental notices, waiting periods, and approvals have been completed, as has the Minnesota Attorney General's review process.

Financial details were not disclosed.

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