Wisconsin group moves to reopen hospital, even as it plans to builds a new one

Almost a year after a Wisconsin hospital closed its doors, a nonprofit organization seeking to restore hospital services has taken a step forward.

The Chippewa Falls Health Cooperative says it has reached a purchase agreement with the Hospital Sisters Health System to buy the shuttered St. Joseph’s Hospital in Chippewa Falls, Wisconsin.

The Chippewa Falls Health Cooperative says it has reached a purchase agreement with the Hospital Sisters Health System to buy the shuttered St. Joseph’s Hospital in Chippewa Falls, Wisconsin. Citing daunting financial challenges, HSHS closed St. Joseph’s and Sacred Heart Hospital in Eau Claire, Wisconsin last March.

The Chippewa Falls group announced the purchase agreement with HSHS for St. Joseph’s Hospital last week. The cooperative signed a letter of intent with HSHS in December.

With the purchase agreement in place, the Chippewa Falls group says it hopes to potentially open the St. Joseph’s facility for hospital services by the end of the year.

The organization is also aiming to build a new hospital as well, but hopes to offer services at the St. Joseph’s building until the new facility is complete.

Robert Krause, chairman of the Chippewa Valley Health Cooperative, said he appreciated HSHS working with the group. The cooperative now must determine if it’s financially feasible to reopen St. Joseph’s, and says it has 90 days to complete that assessment.

“We’ve made good progress in our due diligence process during that time and are moving forward as quickly as possible with the rest of the required due diligence now that we have full access to the facility,” Krause said in a statement.

The cooperative says it would be too costly to revamp the St. Joseph’s Hospital into a facility that could serve the community for decades. But the group hopes that it’s feasible to utilize the building for a short period until the new hospital is built.

The Chippewa Valley group is planning to build its new hospital in Lake Hallie, which is located between Eau Clare and Chippewa Falls. Earlier this month, the cooperative tapped an architect to begin designing the hospital.

The group said it’s aiming to build a hospital with 48 beds, including an intensive care unit with 12 beds. The cooperative said the plans for the new hospital also call for an emergency department, labor and delivery services, operating rooms, a cancer center, and diagnostic and imaging services. The group has previously estimated the total cost of the new hospital will be $158 million.

The Chippewa Falls group has been touting its vision of providing a new hospital that will be governed locally and not overseen by an entity outside the region.

“We’ve been singularly focused on making locally governed high-quality healthcare accessible and affordable for Chippewa Valley residents here as fast as possible,” Krause said in a statement.

In a separate effort, another Wisconsin-based health system is planning to build a small hospital in Chippewa Falls.

Aspirus Health, based in Wausau, is planning to build a 10-bed hospital that is slated to open in the first half of 2026.

Matthew Heywood, president and CEO of Aspirus Health, told Chief Healthcare Executive® in a February interview that he’s looking forward to providing more care for the Chippewa Falls region in the wake of the closure of St. Joseph’s Hospital. Aspirus is aiming to build a smaller facility that can begin serving patients quickly. He said the hospital would cost $30-$35 million.

Heywood says the hospital is beginning with basic services, including an emergency department and the ability to stabilize patients. Heywood sees the potential to add services in the future.

“We're excited about getting into that community and helping them fill that void in the community,” Heywood said. “Our goal is to try to do it rapidly, and then as the community needs more services and the things they need, we'll work with the community to slowly, over time, grow the hospital to meet their needs.”

Aspirus looked at the two closed HSHS hospitals, but Heywood said it wasn’t feasible to take them over. He cited challenges with the facilities, including their size.