Watertown Regional Medical Center to Form Joint Venture with LifePoint Hospitals

Watertown Regional Medical Center (WRMC), a 95-bed independent nonprofit hospital located in Watertown, WI, has selected LifePoint Hospitals to form a joint venture partnership. The two parties have entered a phase of exclusive negotiations toward the development of a letter of intent, which is expected to be completed in the next several weeks. As part of their shared vision for the joint venture, WRMC and LifePoint intend to support and grow WRMC’s deep clinical affiliation with UW Health, one of the nation’s most well-respected academic medical centers. LifePoint has indicated its willingness to invest more than $100 million in WRMC, including major capital investments and the creation of a substantial foundation focused on community health needs. The unique whole-hospital joint venture grants LifePoint a majority ownership stake but allows WRMC to retain significant control over parent company level decisions moving forward via a 50% blocking interest. This transaction represents LifePoint’s first entry into Wisconsin and is the state’s first nonprofit conversion.

Juniper’s Role
Juniper is acting as WRMC’s exclusive investment banking advisor throughout the strategic partnership process. Juniper conducted a comprehensive market-clearing process which included consideration of 23 potential partners, including all regional Wisconsin systems. Juniper will continue to advise WRMC through the drafting of the letter of intent, the completion of confirmatory due diligence, the signing of a definitive agreement, and the acquisition of all requisite regulatory approvals.

Watertown Regional Medical Center
WRMC is a nonprofit health system based in Watertown, WI, between Madison and Milwaukee. It consists of a 95-bed hospital, primary clinics, specialty clinics, and senior housing campuses. The system maintains a long-standing clinical affiliation with UW Health, which provides exceptional specialty care resources for adults and pediatrics, as well as a link to the university’s research and academic work. WRMC is one of the area’s largest employers and fulfills an important economic role within the community.

LifePoint Hospitals
LifePoint is a national investor-owned hospital company with more than $3.7 billion in revenues and more than 60 hospital campuses in 21 states. With deep skill and experience operating community hospitals around the country, LifePoint is the sole community hospital provider in the majority of communities that it serves. WRMC is LifePoint’s first hospital acquisition in Wisconsin and represents the first ever nonprofit conversion in the state.

Additional Details
For additional information, please refer to the press release.