Danville – Geisinger has requested the Geisinger Authority to proceed with new bond financing of up to $1 billion in Summer 2019. The new bonds may include debt refinancing and new debt currently estimated at $200 million.
Geisinger expects to use the financing to fund new health care facilities and equipment, and to replace existing debt if interest rates are favorable. Proceeds from the proposed bond issue will be used to benefit patients served by Geisinger through the acquisition, renovation and construction of buildings and equipment in eight different Pennsylvania counties: Centre, Columbia, Lackawanna, Luzerne, Lycoming, Mifflin, Montour, and Northumberland, and also in Atlantic County in New Jersey.
Geisinger officials are meeting with the Commissioners and council members in each of these counties, requesting passage of a resolution permitting the use of the bond funds within that county and acknowledging that the issuance of the bonds is desirable for the health, safety and welfare of county residents. County government approvals are required under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and the Municipal Authorities Act of 1945. The Lycoming County TEFRA hearing will be held at 10 a.m. July 18 at the County Commissioners office at the Executive Plaza, 330 Pine Street, Williamsport.
Any plans for the use of the bond funds are also subject to approvals by the Geisinger Health Board of Directors and the Geisinger Authority. Repayment of the bonds is based on the credit of Geisinger, which currently maintains credit ratings of “Aa3” with a stable outlook from Moody’s Investors Service and “AA” with a stable outlook from Standard & Poor’s Ratings Services.
The Geisinger Authority is a corporation organized by the Commissioners of Montour County, Pennsylvania, and is only obligated to pay the bondholders any money received from Geisinger intended for payment of the bonds. Geisinger Authority, Montour County, and the counties providing the requested approvals are not liable for the repayment of the Series 2019 bonds, and no taxing power is pledged for their repayment.
One of the nation’s most innovative health services organizations, Geisinger serves more than 1.5 million patients in Pennsylvania and New Jersey. The system includes 13
hospital campuses, a nearly 600,000-member health plan, two research centers and the Geisinger Commonwealth School of Medicine. Geisinger is known for its focus on caring and innovative programs including the ProvenCare® best-practice approach to maximize quality, safety and value; ProvenHealth Navigator® advanced medical home; Springboard Health® population health program to improve the health of an entire community; ProvenExperience™ to provide refunds to patients unhappy with their care experience; and Geisinger’s MyCode® Community Health Initiative, one of the largest healthcare system-based precision health projects in the world. With more than 245,000 volunteer participants enrolled and over 145,000 sequenced, MyCode is conducting extensive research and returning potentially life-saving results to participants. A physician-led organization, with approximately 32,000 employees and more than 1,800 employed physicians, Geisinger leverages an estimated $12.7 billion positive annual impact on the Pennsylvania and New Jersey economies. Repeatedly recognized nationally for integration, quality and service, Geisinger has a long-standing commitment to patient care, medical education, research and community service. For more information, visit geisinger.org or connect with us on Facebook, Instagram, LinkedIn and Twitter.