Emerson Hospital Acquires IT Equipment Thanks to $4 Million MassDevelopment Lease
January 19, 2012
MassDevelopment has issued a $4 million tax-exempt lease on behalf of Emerson Hospital, a full-service regional medical center based in Concord. The Hospital will use lease proceeds to acquire information technology software and hardware. Emerson's services include emergency medicine, critical care, surgery, obstetrics, pediatrics, behavioral health, and transitional care. RBS Asset Finance purchased the lease.
“In the ever-evolving world of healthcare technology, MassDevelopment’s lease program offers a flexible financing option for the Commonwealth’s hospitals and health providers,” said MassDevelopment President and CEO Marty Jones. “This financing will help Emerson fulfill its mission of making high-quality health care accessible to Concord and residents of neighboring communities.”
Founded in 1911, Emerson Hospital has its main campus in Concord and health centers in Westford, Groton, Bedford, and Sudbury. In Concord, the Hospital also has a Center for Specialty Care. The Concord and Westford locations host its Center for Sports Rehabilitation and its Breast Health Center. In addition to its health care services, the Hospital offers diagnostic imaging that uses advanced technologies, such as digital mammography and PET-CT scanning.
“We look forward to using these funds to enhance our information technology systems, furthering our mission to provide ‘premium care with a personal touch,’” said Christine Schuster, president and CEO of Emerson Hospital. “We put the patient at the center of all we do. Our health information exchange will allow us to have a provider-centric Web-based portal consolidating hospital, specialist, and primary care data into one view. As our technology becomes increasingly sophisticated, these funds will enhance the patient experience.”
MassDevelopment’s tax-exempt leases act essentially as installment loans. An investor lends funds to the borrower to purchase equipment and complete any related renovations, and the borrower agrees to make periodic fixed-rate payments. Generally, the borrower leases the equipment for a length of time approximating the useful economic life of the equipment. At the end of the lease term, the borrower typically pays a nominal amount and assumes ownership of the equipment.
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2011, MassDevelopment financed or managed more than 300 projects generating investment of $3.8 billion in the Massachusetts economy. These projects are projected to create more than 10,000 jobs (2,547 permanent and 8,129 construction), and build or rehabilitate more than 1,000 residential units.