Wyoming Hospital Challenges Private Equity Model
- after years of struggling with declining healthcare services,the town of Riverton,Wyoming,is set to open a new community hospital.This initiative follows meaningful service reductions at SageWest Riverton, a hospital...
- Roger Gose, a long-time Riverton physician, spearheaded the effort to restore local healthcare.
- Facing a healthcare crisis, Gose and other residents formed the riverton Medical District, a nonprofit association.
Riverton,Wyoming,residents fought back against private equity healthcare cuts that threatened their access to vital medical services. Thanks to a community-led initiative, the town secured USDA funding, paving the way for a new hospital. This facility will restore essential services after the acquisition of SageWest Riverton by LifePoint Health, and subsequent moves by Apollo Global Management, which led to closures and service reductions, forcing the community to act. Local physician Roger Gose spearheaded the riverton Medical District, a nonprofit focused on patient care over profit, proving that rural hospitals can thrive. With over $37 million secured—the largest rural-progress loan in Wyoming—the new hospital promises 24/7 care and extensive services. News Directory 3 brings you this inspiring story and more.Discover what’s next for this resilient Wyoming town.
Riverton,Wyoming,Builds New Hospital After Private Equity Cuts Services
after years of struggling with declining healthcare services,the town of Riverton,Wyoming,is set to open a new community hospital.This initiative follows meaningful service reductions at SageWest Riverton, a hospital acquired by LifePoint Health and later influenced by Apollo Global Management, a private equity firm. residents felt the impact of cost-cutting measures, including the closure of the maternity ward and mental health services, leading to increased air ambulance transports.
Roger Gose, a long-time Riverton physician, spearheaded the effort to restore local healthcare. Gose, who dedicated years to Riverton Memorial Hospital, witnessed its change after its acquisition. He observed a shift where hospitals were treated as mere assets for generating profit, rather than community resources.
Facing a healthcare crisis, Gose and other residents formed the riverton Medical District, a nonprofit association. Their goal: to build a new hospital that would prioritize patient care over profit margins. Vivian Watkins, a former banking executive, played a crucial role in seeking expert advice and guidance.
The Riverton Medical District sought counsel from stroudwater Associates, a rural healthcare consultancy. Eric Shell, Stroudwater’s chairman, initially doubted the group’s chances but was impressed by their determination. Shell emphasized that rural hospitals can thrive with innovative strategies, focusing on expanding services rather than merely cutting costs.
After a feasibility study, Stroudwater determined that Riverton could support a financially viable rural health system. The study highlighted the potential to capture a significant market share and serve the healthcare needs of the Wind River Reservation.
securing funding proved challenging. The Riverton Medical district turned to the U.S. Department of Agriculture (USDA), considered a “lender of last resort.” After a rigorous application process, the USDA committed over $37 million, the largest rural-progress loan ever awarded in Wyoming.
The new hospital will offer comprehensive services, including inpatient beds, a surgical department, labor-and-delivery rooms, and intensive care units. It will operate 24/7, ensuring access to essential medical care for the community.
The USDA lauded the project’s remarkable local support, citing significant donations and numerous letters of support from residents and businesses. Manny expressed that the new hospital was crucial for their decision to remain in Riverton.
“You want to leave a place better than you found it,” Gose said, reflecting on his commitment to the Riverton community.
What’s next
Construction of the new community hospital is underway, with an anticipated opening date in the near future. The Riverton Medical District hopes their success inspires other communities facing similar healthcare challenges, demonstrating the power of local action and investment.