Bridging the Hospital Financing Shortfall in Rural Wisconsin

Rural hospitals across the country are facing mounting challenges. Since 2010, nearly 190 have closed, according to the National Rural Health Association, leaving many communities with fewer options for nearby care. The gap in resources is significant, with a recent study by Escalent pointing to a $6 billion annual shortfall in funding for rural healthcare and other critical facilities. For rural communities, this hospital financing shortfall makes it harder to maintain essential services that families, businesses and local economies depend on.

In Lafayette County, Wisconsin, community leaders supported the development of a new state-of-the-art healthcare facility at Lafayette Hospital + Clinics (LHC). The project demonstrates how collaboration and creative financing can protect access to care while strengthening the future of the region.

Investing in Local Healthcare

In August 2025, community members, hospital staff and state leaders, including Wisconsin Governor Tony Evers, gathered in Darlington to celebrate the ribbon cutting of the new LHC. The 84,000-square-foot facility, which officially opened in April, doubles the size of the previous hospital and leaves room for future expansion.

The new location is already making a measurable difference. Compared to 2024, LHC has seen:

61 percent increase in MRIs 12 percent increase in lab services 13 percent increase in clinic visits 9 percent increase in radiology services 2 percent increase in other outpatient visits Building upon its previous 70 years of care, the new hospital now houses 24 licensed inpatient beds, two operating rooms, a procedure room and advanced technologies that include:

Onsite 3T MRI As the only provider within a 60-mile radius, the hospital can now deliver advanced imaging close to home. This gives patients faster answers without the need to travel and provides nearby facilities with a more convenient referral option. Robotic Surgery The addition of robotic technology helps physicians perform procedures with greater accuracy, reducing pain, shortening recovery times and allowing patients to return to daily life more quickly. Electronic Intensive Care Unit (eICU) Through a partnership with physicians at University of Wisconsin Hospitals, the eICU brings specialized monitoring and critical care support directly to Darlington. Patients who once might have been transferred can now remain in their community while receiving advanced oversight. Along with these technologies, the hospital has broadened services in orthopedics, urology, wellness and prevention, and mental health. To support this growth, 19 new employees joined the team in 2025, including a behavioral health psychiatrist.

How the Project Came Together

The facility was made possible by a collaborative financing package. Compeer Financial partnered with the regional Clare Bank and the U.S. Department of Agriculture (USDA) to secure $50.87 million in funding. That included $5 million in USDA Community Facility Guarantee financing and $45.87 million in construction-only financing, which will be converted to a USDA Direct Loan at project completion. An additional $14 million in grants came from Congressional Direct Spend programs, the USDA and the State of Wisconsin.

“The facility upgrades the technologies and services we’re able to offer our patients and the region’s healthcare providers and the new location gives us room to grow,” said Marie Wamsley, CEO of LHC. “We’re grateful for the partnership with Compeer Financial in helping secure funding so we can continue to provide our rural community with the comprehensive, around-the-clock medical care it has relied on for more than 70 years.”

A Commitment to Rural Communities

For Compeer, the project reflects a larger mission to support rural vitality by financing essential community facilities.

“Rural communities are the backbone of America, but their residents often experience less than adequate healthcare resources,” said Ben Larson, senior financing officer of mission-related investments at Compeer Financial. “It’s been an honor to collaborate with the teams at LHC, Clare Bank and USDA to secure financing and help modernize healthcare in southwestern Wisconsin.”

Community members share the same sense of gratitude. Pat Meylor of Darlington reflected, “You don’t often think you’ll need this level of care until suddenly, you do. When life takes an unexpected turn, having access to high-quality healthcare close to home is truly invaluable. Our community is fortunate to have such exceptional care available.”

Looking Ahead

The new LHC facility shows what is possible when local leaders and financial partners work together to address the hospital financing shortfall. By expanding healthcare access, creating jobs and strengthening the community, the project provides a model for rural regions nationwide.

Explore more of the ways we invest in rural communities and see how local partnerships are creating lasting impact.