Aspirus to buy Riverview Hospital Association

WISCONSIN RAPIDS -- Wisconsin Rapids' only hospital will have a new owner.

On Friday, Riverview Hospital and Aspirus Inc. announced that they would pursue an affiliation that would result in Aspirus becoming a sole corporate member of Riverview, meaning the Wausau-based health system would acquire ownership of the hospital.

The announcement comes just months after Aspirus Doctors Clinic announced its plans to add a $30 million "hospital of the future," an expansion that would have allowed Aspirus to host 10 to 25 hospital beds and provide inpatient care. This expansion, however, brought some opposition among representatives of Riverview and community members who believed Aspirus' new inpatient facility would result in too much competition and job loss at Riverview.

Once at odds with each other, Riverview will now be integrated into the Aspirus system.

The joining of forces between Aspirus and Riverview means expansion plans for Aspirus Doctors Clinic, 2031 Peach St., will be reduced, as the health care provider will not need to add space for inpatient care. It will however, expand some of its clinic's services, as planned.

"In all likelihood, we will continue to expand the Doctors Clinic in some way," said Rick Nevers, Aspirus' senior vice president of regional operations and system integration officer. "But we would not be adding the inpatient hospital component that was part of our original plan."

Although the expansion will not be as sizable, Nevers said the area still likely will see an increase in jobs, noting that communities with an Aspirus-affiliated hospital normally see a growth in employment opportunities. He said all Riverview staff members would retain their positions, and Aspirus would honor the seniority of employees.

Nan Taylor, Riverview's business development and community relations director, echoed a similar line of thought, noting that health care services tend to increase at Aspirus-related hospitals, resulting in a growing number of jobs as well. She said the affiliation will result in more efficient and comprehensive coordination of health care services.

For Riverview's patients and employees, Taylor said she does not expect much to change. Despite Aspirus' pending acquisition of the hospital, she stressed there will be strong local leadership at Riverview and noted that local representation will remain on the board.

"Right now, it is business as usual," Taylor said.

As for the amount for which Aspirus purchased Riverview Hospital Association, Taylor said the two organizations still are working through the details but will disclose the amount once finalized.

The new affiliation also will result in the endowment of a new $100 million foundation, funded by both Aspirus and Riverview, that would be used to invest in the health and general needs of Wisconsin Rapids. The purpose of the foundation is vague, Nevers said, so that the endowment can be used for a range of opportunities.

The Riverview Hospital Association board of directors already have signed a letter of intent to affiliate with Aspirus, and the board will request approval for the affiliation by members of the Riverview Hospital Association at its annual December meeting.

The affiliation is not the first time Aspirus and Riverview have collaborated in delivering programming. The two nonprofit organizations worked together to develop the UW Cancer Center Riverview and Riverview'shospitalist program. Both also participated in the Aspirus Network for health plan insurance contracts and the Wisconsin Valley Heath Network for group purchasing.

After months of encouraging discussions with Aspirus and Riverview, Mayor ZachVruwink commended the two organizations for uniting to keep the community's health care needs a top priority. He said the affiliation provides a great opportunity to combine the best of what the two entities have to offer.

"It's now a new beginning for the way care is delivered in the community, and the way we keep people well," Vruwink said.

Nevers said the affiliation would be effective no later than March 1.

"We will continue to develop a 'hospital of the future,' it will simply be through Riverview now," Nevers said.

Melanie Lawder can be reached at mlawder@cwnews.net or 715-423-7200. Find her on Twitter as @mel_lawder.