MassDevelopment Financing Package Contributes to Baystate Medical Center “Hospital of the Future”
November 14, 2011
MassDevelopment has issued a $25 million tax-exempt bond and $20 million tax-exempt lease on behalf of Baystate Medical Center in Springfield, which serves as the western campus of Tufts University School of Medicine. The bond proceeds will be used to finish and equip a new emergency department and support areas in the ongoing “Hospital of the Future” project on Baystate’s main campus. Lease proceeds will go toward acquiring medical and nonmedical equipment, including equipment for patient care and monitoring, imaging, information technology, and surgical equipment for the hospital project. JP Morgan Chase Bank purchased the bond and Bank of America Public Capital Corp. purchased the lease.
“As the second-busiest emergency department in the Commonwealth and the largest private employer in the Springfield area, Baystate Medical Center plays a most significant role in both the physical and economic health of Massachusetts,” said MassDevelopment President and CEO Marty Jones. “This low-cost financing will contribute to the multiple phases of the ‘Hospital of the Future’ project, which will provide state-of-the-art care to Baystate's many patients.”
Baystate Medical Center, a 659-bed facility with 57 bassinets, is the only Level 1 trauma center in western Massachusetts, treating the most critical patients in the region. The “Hospital of the Future” project is construction of a new 600,000-square-foot facility, featuring a state-of-the-art heart and vascular center and single patient rooms with ample natural light, modern amenities, and comfortable space for family members and visitors.
“We appreciate MassDevelopment’s efforts to facilitate this low cost tax-exempt financing in a very timely and efficient manner,” said Dennis Chalke, CFO of Baystate Health. “This financing package supports our commitment to the community to be stewards of our financial resources and complete this project on time and on budget.”
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 277 projects generating investment of nearly $3.7 billion in the Massachusetts economy. These projects are projected to create 10,291 jobs (2,507 permanent and 7,784 construction) and 1,323 housing units (309 new and 1,014 rehab).