Wisconsin Sees First Nonprofit Hospital Conversion with Joint Venture Between Watertown Regional Medical Center and LifePoint Health
Watertown Regional Medical Center (WRMC), an independent nonprofit hospital located in Watertown, WI, has formed a joint venture partnership with LifePoint Health. This represents the first conversion of a nonprofit hospital in the state of Wisconsin. The unique structure allows WRMC to retain significant control over parent company-level decisions via a 50% blocking interest on the Board. 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 will invest more than $100 million in WRMC, including major capital investments to ensure that all possible care can be delivered locally. The transaction will also create a substantial charitable foundation focused on community health needs.
Juniper acted 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 advised WRMC through the selection of a partner, assessment of structural options, documentation of the agreements, as well as achieving all requisite regulatory approvals, including review by the Wisconsin Attorney General.
Watertown Regional Medical Center
WRMC is a nonprofit health system based in Watertown, WI, between Madison and Milwaukee. It consists of a large inpatient hospital, primary clinics, specialty clinics, and senior housing campuses. WRMC is one of the area’s largest employers and fulfills a vital economic role within the community.
LifePoint is a national investor-owned hospital company with more than $5.5 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 in Wisconsin and represents the first ever nonprofit hospital conversion in the state.
For additional details, please refer to the press release.