Lahey Hospital & Medical Center Builds Cogenerational Plant, Acquires Equipment Thanks to $130 Million MassDevelopment Bond

June 24, 2013

Contacts:
Kelsey Abbruzzese, MassDevelopment, 617-330-2086 & 617-448-9077 (cell)
kabbruzzese@massdevelopment.com
Megan Youngblood, Lahey Hospital & Medical Center, 781-744-5607

MassDevelopment has issued a $130 million tax-exempt bond on behalf of Lahey Clinic Foundation, Inc., which is the parent company of Lahey Hospital & Medical Center, the physician-based nonprofit healthcare organization that has served greater Boston for almost 90 years. The organization will use bond proceeds for a variety of capital projects, including building and equipping a cogeneration power plant, and making related renovations. Lahey will also use bond proceeds to acquire an electronic medical records system and equipment for radiology, operating rooms, cancer services, information technology infrastructure, and telemetry patient monitors. JPMorgan Chase Bank purchased the bond.

“This low-cost financing will help Lahey Hospital & Medical Center become more sustainable in its energy use while using cutting-edge medical technology and equipment,” said MassDevelopment President and CEO Marty Jones. “Lahey’s compassionate patient care and multidisciplinary approach are hallmarks of the Commonwealth's healthcare sector, an industry we proudly support.”

Lahey Clinic Foundation includes the Lahey Clinic, Inc., a 500-member multi-specialty clinical practice with locations throughout northeastern Massachusetts; Lahey Hospital & Medical Center, Burlington, a 317-bed hospital and ambulatory care center in Burlington; Lahey Medical Center, Peabody, which serves more than 800 outpatients each day and includes a 10-bed hospital; and fundraising entities. The organization is known for trauma care; liver transplants; urology; endocrinology; heart and vascular care; and treatment of cerebrovascular disease. Lahey Hospital & Medical Center is a teaching hospital of Tufts University School of Medicine.

In 2012, an affiliation between Lahey Clinic and Northeast Health System formed Lahey Health to create a full continuum of integrated health services. It comprises nationally recognized, award-winning hospitals, primary care providers, specialist physicians, behavioral health services, post-acute programs, such as home health services, skilled nursing and rehabilitation facilities, and senior care resources located throughout northeastern Massachusetts and southern New Hampshire. To learn more visit LaheyHealth.org.

“The team at Lahey Clinic Foundation, Inc., found MassDevelopment very helpful in completing this important transaction, which will fund a portion of our electronic health record project and routine capital projects,” said Timothy O’Connor, executive vice president and chief financial officer and treasurer for Lahey Hospital & Medical Center and its parent organization, Lahey Health.

MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2012, MassDevelopment financed or managed 280 projects generating investment of more than $2.3 billion in the Massachusetts economy. These projects are projected to create more than 12,000 jobs and build or rehabilitate 900 residential units.