Under initial terms of the deal, LifePoint will allot more than $100 million for capital projects and other investments in Watertown Regional. The proceeds of the deal will go toward the creation of a not-for-profit foundation. Watertown Regional will become a for-profit, tax-paying hospital. Other terms of the deal, including LifePoint's ownership stake in the hospital, were not disclosed.
LifePoint also agreed not to lay off any Watertown Regional employees and maintain the hospital's clinical affiliation with University of Wisconsin Health, Madison, which is about 45 miles west of Watertown Regional. UW Health and Watertown Regional have partnered since 2008.
Watertown Regional had been looking for an equity partner since May and evaluated proposals from 23 hospitals and health systems before settling on LifePoint.
“We believe a partnership with LifePoint will only help accelerate our ability to fulfill our vision to build the community health system of the future, focused on keeping people well and designing an ideal patient experience,” said Jeff Baum, board chair of Watertown Regional, in a release.
Pending a letter of intent, definitive agreement and regulatory approvals, the deal is expected to close early next year. LifePoint operates more than 60 hospitals. Watertown Regional will put LifePoint in 22 states.
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