In the report, project developer Newport Hospital Corp. cited House Republicans’ tax reform plan, which would eliminate tax-exempt bonds that help nonprofit hospitals finance capital projects, as the source of the delay. The Senate has also proposed a tax reform plan, which would not eliminate tax-exempt bonds.
The West Maui project, which began construction in August 2016, will include a 25-bed critical access hospital, a 40-bed skilled nursing facility and a 40-unit assisted living facility, among other features.
Newport Hospital Corp. plans to use municipal bonds to generate a more than $80 million loan to finance the project. Elimination of tax-exempt bonds would create a barrier for project financing, although there are other options, albeit with longer timeframes, according to the report.
