Prepared by U.W.-Madison Extension Professor of Practice – Law William L. Oemichen
CVHC is Consistent with a Long Wisconsin Cooperative Tradition.
Chippewa Valley Health Cooperative (CVHC) is a member-owned cooperative and is consistent with our state’s strong cooperative tradition. While unique as the first hospital cooperative organized under Wisconsin cooperative law, CVHC is slated to become an innovative participant in cooperatively provided healthcare in the United States.
Highly rated health care cooperatives in Wisconsin and Minnesota include Group Health Cooperative of South Central Wisconsin (GHC) and HealthPartnersHMO (HealthPartners). GHC has nearly 80,000 member-owners and is organized under Wisconsin Statutes Chapter 185, one of the state’s two cooperative laws. GHC members own the clinics, and the physicians and other medical professionals are employees. GHC is perennially rated as one of the highest-quality healthcare providers in the nation as determined by the National Council for Quality Assurance (NCQA). The key factor is that the members own both the clinics and the insurance plan.
HealthPartners is formally organized under Minnesota nonprofit law because Minnesota does not have a healthcare cooperative statute. However, HealthPartners operates under cooperative governance principles, where the board of directors is elected from those receiving healthcare from the cooperative. Like GHC, HealthPartners is highly rated by NCQA for quality and maintains more than 50% of the hospital beds in the Twin Cities.
Both GHC and HealthPartners demonstrate that a member-owned, provider-integrated approach leads to higher-quality, more efficient healthcare. Their success proves that cooperative healthcare delivers better patient outcomes, lower costs, and greater satisfaction. In addition, other parts of the country are served by highly rated community-owned health care providers.
For example, KaiserPermanente and Intermountain Health are close cousins and annually meet with GHC and HealthPartners to discuss healthcare innovation and quality.
Cooperatives are Committed to their Communities.
Cooperatives are the only type of business with seven express principles shared across all cooperatives. A key principle is “concern for community.” This principle uniquely binds cooperatives to the communities they serve. Another key principle is “democratic member control” where CVHC’s consumer members largely determine how CVHC is governed.
CVHC is Uniquely Suited for the Chippewa Valley Because Service is Prioritized Over Profit.
CVHC is uniquely suited to the Chippewa Valley because a member-owned cooperative prioritizes people over profits. Unlike investor-driven healthcare models, where maximizing returns can sometimes overshadow patient care, a cooperative ensures patient, healthcare provider, and other community stakeholder members have a direct voice in decision-making.
Financial resources are reinvested into improving services, expanding access, and enhancing patient care—rather than being directed toward shareholder dividends. Like GHC and HealthPartners, CVHC’s consumer members elect most of CVHC’s Board of Directors. This ensures CVHC and its management is focused on its consumer-owners and not on investors seeking profit or large healthcare systems seeking to finance central office operations.
Wisconsin is a Leading Cooperative Enterprise State.
Wisconsin has a long and proud history of supporting cooperative enterprises, offering a legal and regulatory environment favorable to cooperatives. Under Wisconsin law, member-owned cooperatives benefit from democratic governance, ensuring major policy decisions are made by those who use the services—not by outside investors. This structure fosters transparency, accountability, and trust, giving members direct influence over everything from service expansion to pricing models.
Wisconsin is the second leading cooperative business state in the country after Minnesota with 865 cooperatives headquartered in the state with 2.9 million member-owners. Besides healthcare, cooperatives include electric (Eau Claire Energy) and telecommunications utilities; credit unions (Royal Credit Union); Farm credit (Compeer); agricultural production and processing (CHS/CENEX, Land O’ Lakes and Ocean Spray), senior housing, school district (CESA’s), mutual insurance (American Family and Northwestern Mutual Life), and grocery and consumer.
Cooperatives are Economically Resilient.
Financial resilience is a key cooperative asset. Cooperatives are built for long-term sustainability rather than short-term profit. By pooling resources, CVHC can negotiate better pricing on medical services, equipment, and insurance, leading to cost savings for members. Additionally, because “profits” are reinvested for the members’ sole benefit, the cooperative can focus on community health initiatives and preventative care programs, improving overall wellness and reducing long-term healthcare costs. This tends to build strong consumer loyalty.
Cooperative Strengthen the Local Economy.
Finally, the cooperative model strengthens the local economy. A member-owned cooperative ensures healthcare decisions remain local, keeping jobs, investments, and innovation right here in the Chippewa Valley. Rather than being subject to corporate buyouts or distant decision-making, CVHC is anchored in the community, prioritizing patient needs, workforce stability, and high-quality care.
In summary, CVHC’s structure as a member-owned cooperative under Wisconsin law guarantees community-driven governance, financial sustainability, cost savings, and local economic benefits. By following the example of other successful cooperative healthcare models, CVHC can help ensure the Chippewa Valley enjoys affordable, accessible, and community-focused for generations to come.
