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MassDevelopment $2.5 Million Lease Helps Emerson Hospital Buy IT Equipment

March 18, 2013

Kelsey Abbruzzese, MassDevelopment, 617-330-2086 & 617-448-9077 (cell)
Bonnie Kaplan Goldsmith, Emerson Hospital, 978-287-3458

MassDevelopment has issued a $2.5 million tax-exempt lease on behalf of Emerson Hospital, a multi-site health system headquartered in Concord. The Hospital will use lease proceeds to buy information technology equipment and fetal monitors, an instrument container system, and patient beds. The lease will also finance related renovations. RBS Asset Finance purchased the lease.

“As technology in the medical field rapidly changes, MassDevelopment's tax-exempt leases offer flexible financing options for health care providers,” said MassDevelopment President and CEO Marty Jones. “This financing will help Emerson improve its high-quality health care provided to its patients.”

Founded in 1911, Emerson Hospital's main campus is in Concord, with additional health centers in Westford, Groton, and Sudbury. The Hospital's services include emergency medicine, critical care, surgery, obstetrics, pediatrics, behavioral health, transitional and home care. The Concord and Westford locations host the Center for Sports Rehabilitation and Breast Health Center. The Hospital also offers diagnostic imaging using advanced technologies such as digital mammography and PET-CT scanning.

“Emerson is committed to providing high-quality care in an atmosphere of warmth and compassion, using the latest technologies and equipment.” said Christine Schuster, Emerson Hospital President and CEO. “This lease enables the hospital to provide ‘Premium Care with a Personal Touch' to the thousands of area residents who rely on Emerson for advanced, high-quality care.”

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 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.