UPMC will partially finance the projects through a $750 million tax-exempt bond issue. Of this money, $400 million is budgeted for construction projects, including an already planned 90-bed hospital in South Fayette, Pa., which will receive $35 million from the bond issue.
The remaining funds from the bond issue will be used to pay off existing debts such as refunding $45 million in bonds held by Hanover (Pa.) Hospital and covering a $235 million bridge loan to Harrisburg, Pa.-based PinnacleHealth System. UPMC recently reached a definitive agreement to acquire PinnacleHealth System, a seven-hospital system, which includes four hospitals recently acquired from Franklin, Tenn.-based Community Health Systems.
UPMC is currently in its biggest expansion phase since forming in 1990, according to the report.
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