St. Louis-based Ascension Health plans to issue $1.35 billion in tax-exempt revenue bonds to finance and refinance numerous projects and debt of its Wisconsin Benefited Affiliates, including Ministry Health Care, Inc.
The maximum principal amount for each of the local Ministry facilities was listed as follows: Eagle River Memorial Hospital, Eagle River -- $12 million: Sacred Heart-Saint Mary’s Hospital, Tomahawk and Rhinelander respectively -- $84 million; and Howard Young Medical Center, Woodruff -- $24 million.
“As part of Ascension’s financing plan, certain Ministry debt may be refunded (bond refinancing),” said an Ascension spokesperson contacted by FYI – Northwoods News.
“ As a requirement to issue tax exempt bonds, notices with ‘not to exceed’ amounts are being published in local newspapers in advance of hearings to be held by local governments. “In the case of the Ministry facilities, the amounts relate to anticipated refundings, with the exception of a small amount (i.e., less than $3 million) of reimbursement for certain prior capital expenditures by Ministry Sacred Heart-St. Mary’s.”
The legal notice that announced the April 18 public hearing on the bond issuance says the Wisconsin Health and Educational Facilities Authority (WHEFA) will issue the bonds. However, the state has no obligation to repay any WHEFA bonds under any circumstances. Additionally, WHEFA does not use public funds for its operations. Created by the Legislature in 1973, WHEFA is a conduit issuer of tax-exempt revenue bonds for all non-profit organizations in Wisconsin. The buyers of the bonds do not have to pay federal tax on them. The legal notice announcing the sale says the proceeds of the bonds . . . “may be used to finance or refinance the purchase, acquisition, constructions, enlargement, remodeling, renovation, improvement, furnishing or equipping of the hospitals, skilled nursing facilities, assisted living facilities, other health facilities, and their related facilities, including land, owned or operated by the Wisconsin Benefited Affiliates . . .”
The bond issue also includes additional money for similar projects and refinancing in out-of-state affiliates of Ascension.
