Palmetto Health recently announced it will use a $120 million tax-exempt bond to refinance a health care system acquisition and pay for other investments at different facilities.
The bond comes from the South Carolina Jobs-Economic Development Authority (JEDA), and the funds in Series 2016A Hospital Improvement Revenue Bonds will allow the company to refinance its acquisition of the Tuomey health care system in Sumter. In addition, the bond will pay for other equipment and facility needs in facilities in Richland and Sumter counties.
Palmetto Health is made of different entities including Palmetto Health Baptist Parkridge, Palmetto Health Baptist, and Palmetto Health Richland. In January, Palmetto Health Tuomey, a non-profit corporation, bought out Tuomey Regional Medical Center and connected health care practices.
“America’s medical needs just continue to grow, and it’s an expensive venture," David Kates, a bond counsel with Chapman and Cutler LLP in Chicago, said. "This financing helps make it possible for Palmetto Health to better serve its community, and we were pleased to have been able to assist."
Following the merger of Palmetto Health Tuomey, which employed roughly 1,800 people, the health care system now has nearly 12,300 employees.
“We’ve worked with Palmetto Health and our state’s other outstanding medical systems for many years,” Harry A. Huntley, CPA, executive director of JEDA in Columbia, said. “Helping to make this critical acquisition even more financially sound was particularly exciting.”