Hospital leaders decided to borrow on their own credit in a bond financing arrangement because the hospital was turned down by a government loan guarantee program, the report said. Another loan program said the hospital’s construction project involved too big of a loan for their portfolio.
The $350 million loan is more than the cost of the project, but the report said the reserves could help offset any future financial struggles. Changing earthquake standards required the upgrade to CMH. The new replacement hospital is projected to have 250 beds.
The project is set to be finished in March 2015.
Read the Ventura County Star report on Community Memorial Health System.
Related Articles on Hospital Loans:
Financing Options for Large Hospitals and Multi-Hospital Systems
Michigan Hospital to Receive HUD Funding to Build New Facility
Connecticut’s Hartford HealthCare to Make $350M Bond Offering to Fund Construction, Refinance Debt
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