Froedtert acquires Manitowoc’s Holy Family
MANITOWOC – Froedtert Health will buy a majority interest in Holy Family Memorial under an agreement announced Wednesday.
The agreement continues the consolidation among health systems that has taken place throughout the state and the country for more than a decade.
The terms of the agreement were not disclosed.
Froedtert Health previously announced plans to buy a minority stake in Holy Family.
Holy Family Memorial, which had revenue of $122.5 million in 2019, includes Holy Family Memorial Hospital in Manitowoc and eight clinics that employed 84 physicians, advanced nurse practitioners and physician assistants as of June 30.
Under the agreement announced
Wednesday, Holy Family will maintain its Catholic identity under the sole sponsorship of the Franciscan Sisters of Christian Charity Inc., according to the news release.
“For more than 120 years, the mission of Holy Family Memorial has been to serve the health needs of people in and around Manitowoc with quality, compassionate care that reflects Gospel values,” Sister Natalie Binversie, community director of the Franciscan Sisters of Christian Charity, said in a statement. “We are grateful to know that our mission will continue through this partnership with Froedtert.”
The agreement will give Holy Family long-term clinical and financial stability, Froedtert Health and Holy Family said in a news release.
Holy Family had an operating loss of $625,357 and a net profit of $9.7 million, which includes investment gains on its reserves, in 2019, according to the financial statement of the Franciscan Sisters of Charity Sponsored Ministries.
(This does not include an operating profit of $240,141 on revenue of $1.3 million for Holy Family Health Services.).
But the health system reported a $5.9 million operating loss for the first six months of last year as hospitals prepared for the pandemic and limited elective procedures. Some of those losses may be offset by money from the federal CARES Act and Payroll Protection Program.
Froedtert Health will not assume Holy Family’s long-term debt of $45.9 million as of Dec. 31, 2019, under the agreement.
Holy Family Memorial will operate as part of the Froedtert & the Medical College of Wisconsin health network.
The network includes Froedtert Hospital in Wauwatosa as well as hospitals in Menomonee Falls and West Bend. It also includes Froedtert South, an affiliate of Froedtert Health, in Kenosha.