Watertown (Wis.) Regional Medical Center has received state approval to sell a majority of the health system to Brentwood, Tenn.-based LifePoint Health, according to a Milwaukee Journal Sentinel report.
Here are four things to know about the pending transaction.
1. The proposed sale — the first time a nonprofit health hospital in Wisconsin will be sold to a for-profit company — received approval from the Wisconsin Department of Justice this week, according to the report. WRMC and LifePoint announced the pending sale in October and signed a definitive agreement in May.
2. Under the deal, 80 percent of WRMC will be sold to LifePoint Health for $30 million and $2 million in warrants to buy LifePoint stock, according to the report. WRMC will retain a 20 percent ownership stake in the joint venture.
3. Proceeds from the sale will be used to fund a foundation that will have more than $40 million in assets after paying off Watertown Regional's long-term debt, according to the Milwaukee Journal Sentinel.
4. The sale is expected to close in the next month or two.
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