Until recently, Iowa Health System didn’t access the nonexempt market often, according to Mr. Vermeer. Now, the health system is taking advantage of the current low interest rate of nonexempt bonds, which gives the system more flexibility compared to tax-exempt bond issues, which are typically limited to specific uses.
Mr. Vermeer also shared some of Iowa Health System’s financial goals. He said the system, which currently has annual revenues of $2.8 billion, aims to be at least a $4 billion organization to be successful in the future. To reach this goal, IHS is looking at expanding its eight existing regions by two or four more regions, with one or two hospitals in each region. “We think alignment with physicians is the key to the future. We are looking at organizations well advanced in their alignment strategies,” he said.
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