Aurora Health Care has signed a letter of intent (LoI) with Kohler Co., to commence the process of building a replacement hospital and new outpatient surgery centre and medical office in Kohler, a village in the US state of Wisconsin.

The property housing these facilities is located north of Union Avenue and west of South Taylor Drive, and is owned by Kohler.

Aurora plans to sign the lease agreement subject to the completion of scrutiny of the land parcel.

Aurora eyes the $324m project as an opportunity to expand its workforce.

Replacing the aging Aurora Sheboygan Memorial Medical Center, the new facility is expected to open in 2021.

Aurora central region executive vice president Carrie Killoran said: "The greater Sheboygan community deserves the best, and we're committed to delivering just that – high-quality, cost-effective care.

"We've been listening to the community and, with this new site, we hope to have an opportunity to provide state-of-the-art health care in a convenient, central location."

Aurora is a not-for-profit health care provider and offers services at sites in over 90 communities throughout eastern Wisconsin and northern Illinois.

It serves over 1.2 million patients every year through a network of facilities, services and providers, including 15 hospitals, over 150 clinics, more than 70 pharmacies and more than 33,000 caregivers.