Duluth-based St. Luke's to merge with Wisconsin medical system Aspirus Health

DULUTH - Duluth's St. Luke's and the more expansive Wisconsin-based Aspirus Health announced Wednesday plans to merge — a joint effort that would link 19 hospitals, 130 outpatient locations and about 14,000 employees.

The health care systems have signed a letter of intent with a goal of completing the process in early 2024, according a news release that describes the organizations as having "closely aligned missions." The headquarters will remain in Wausau, Wis., where Aspirus Health is based, and Duluth will continue to have a corporate office.

The terms of the deal, which have been in the works for the past several months, were not disclosed.

There are no immediate plans to change employment, compensation or benefits, according to a spokesman for Aspirus Health. If the merger goes through, Aspirus said it plans to honor existing employment contracts.

"The proposed agreement intends to expand access to care, including providing growth opportunities for our physicians and staff," Andy Napgezek, the system's spokesman, said in an email.

The proposed deal also is not expected to affect patients.

Nicholas Van Deelen, St. Luke's co-president/CEO and chief medical officer, described the plan as a "bold move to grow in a way that maintains our exceptional quality and patient experience."

"Joining forces with Aspirus Health enables us to expand access and better support clinical staff to reach even more patients," Van Deelen said in the news release. "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."

Aspirus Health's current reach includes northern and central Wisconsin and the Upper Peninsula of Michigan. This would give the nonprofit a presence in northeastern Minnesota. The system currently has 17 hospitals and 75 clinics. Aspirus Medical Group has about 1,000 physicians and advance-practice clinicians and 10,000 employees.

"We envision a future where access to excellent health care is easier and more seamless for patients," Matthew Heywood, Aspirus Health's president and CEO, said in the release.

St. Luke's has two hospitals and more than 40 clinics in northeastern Minnesota, northwestern Wisconsin and the Upper Peninsula. It employs 3,000 — with about 300 physicians and advanced-practice clinicians.

St. Luke's is the smaller of two health care systems in Duluth; Essentia Health employs 15,000 people.

The joining of St. Luke's and Aspirus, which started with the signed letter of intent, now moves on to information gathering, regulatory reviews and other approvals, according to Napgezek.

In 2020, St. Luke's completed a $37.5 million, 60,000-square-foot emergency department billed at the time as having "the region's most technologically advanced cardiac cath labs and CT scanners."

In March, St. Luke's broke ground on a $58 million expansion to Building A, adding 82,000 square feet of vertical expansion for private cardiac and intensive care hospital rooms.

Melissa Burlaga, a spokeswoman for St. Luke's, said hospital staff members aren't immediately being interviewed about the plans, but said that if an agreement is reached St. Luke's and Aspirus Health would collaborate on a brand name.

Eric Lohn, St. Luke's co-president/CEO and chief financial officer, said in the release that the community's evolving needs call for finding 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," he said. "Joining with Aspirus Health will benefit our patients, our staff and our broader network."