Mayo Clinic has not designated the bond sale for a specific project, but the system noted it is planning large capital expenditures. Over the next five years, the system expects capital spending of $6.5 billion, according to the report.
“The specific uses of the net bond proceeds have not been determined, but debt financing is a routine element of Mayo Clinic’s capital formation,” a Mayo Clinic spokesperson told the Post Bulletin. “Debt financing is a routine element of Mayo Clinic’s long-term financial planning, and the current rate environment makes it an opportune time to issue bonds.”
The net benefit of the bond sale to Mayo Clinic will be $497.5 million after issuance costs are deducted, according to the report.
Read the full Post Bulletin article here.
More articles on healthcare finance:
Why rural hospital closures hit a record high in 2020
New York hospital takes $34M hit from nearly 2,700 canceled surgeries
Washington health system blames Cerner for bankruptcy
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.