Brentwood, Tenn.-based LifePoint Health and Watertown (Wis.) Regional Medical Center have finalized a previously announced joint venture to share ownership and operation of the hospital.
Here are eight things to know about the joint venture.
1. The joint venture will invest $100 million in WRMC and the community over the next decade. Investments will include significant advancements in technology, the expansion of clinical services and initiatives — such as WRMC's Wellness Initiative and facility improvements. LifePoint has also committed to hiring all employees, subject to standard pre-employment screenings, and investing in their professional development.
2. As part of the joint venture, LifePoint will own 80 percent of the hospital, while WRMC and the community will retain a 20 percent ownership stake.
3. Proceeds from the joint venture transaction will be used to pay off WRMC's existing financial obligations, and the remaining assets will be used to create a substantial charitable foundation focused on community health. The foundation, called the Greater Watertown Community Health Foundation, will be established as an independent, locally governed, nonprofit organization.
4. As part of LifePoint, WRMC will become a tax-paying organization.
5. The hospital will be governed by a board with equal representation from both WRMC and LifePoint.
6. Richard Keddington will take on the role of WRMC CEO Sept. 14, replacing John Kosanovich, who will retire after serving as WRMC's CEO for 20 years.
7. Jeff Baum, chairman of the WRMC board of directors, expressed enthusiasm about the joint venture. "This is an exciting day for WRMC and our communities," he said in a news release. "As part of LifePoint's system, we have resources and support to advance healthcare throughout our region and strengthen the future of the communities we serve. We are pleased to have found a partner who shares our commitment to providing high-quality care to South Central Wisconsin."
8. The joint venture was subject to regulatory reviews by the Wisconsin Attorney General's Office.
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