Aurora Health Care announced it has signed a letter of intent with Kohler Co., initiating a process which would allow Aurora to build a replacement hospital and new outpatient surgery center and medical office building in eastern Sheboygan County, Wisc. The location is north of Acuity and south of the University of Wisconsin-Sheboygan campus.

The site is a 56-acre parcel that abuts the City of Sheboygan and is owned by Kohler Co. Aurora plans to enter into a lease agreement once due diligence on the property is complete.

The $324 million project would result in construction jobs and an expansion of Aurora's local health care workforce. Aurora expects the facility will open to patients in 2021, replacing the aging Aurora Sheboygan Memorial Medical Center.