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MassDevelopment Provides $178,555,000 for UMass Memorial Hospital Renovations

May 23, 2017


​Meggie Quackenbush, MassDevelopment, 617-330-2011 & 857-208-2777 (cell)

Anthony Berry, UMass Memorial Health Care Inc., 508-793-5394 & 774-317-0422 (cell)

In two separate transactions, MassDevelopment has provided $178,555,000 in financing for UMass Memorial Health Care Inc., a healthcare system in Worcester County. The financing includes a $53,555,000 tax-exempt bond that UMass Memorial will use to make renovations to the UMass Memorial Medical Center’s Memorial and University campuses in Worcester. The renovations include:

  • Relocating and upgrading offices, patient and waiting rooms, and staff workspaces and break rooms.
  • Developing pathways, public corridors, and atriums. 
  • Replacing HVAC, sanitary, and water piping distribution systems. 
  • Buying and installing an emergency power and combined heat and power system. 

The bond will also refinance past debt. The financing also includes a $75 million tax-exempt lease and $50,000,000 tax-exempt bond purchased by Bank of America Public Capital Corp. Proceeds from this tax-exempt lease and tax-exempt bond will partially fund the purchase and installation of an electronic medical record and information management system, including computer equipment and software licenses, at UMass Memorial facilities.

“These renovations allow us to care for our patients in the most comfortable and convenient settings available while giving our caregivers the most modern tools and resources to ensure their success,” said UMass Memorial Health Care President and CEO Eric Dickson, MD. “Thanks to our continued positive and improved credit ratings, our system is enjoying this funding at a premium rate.”

MassDevelopment issued a $168,750,000 bond on behalf of UMass Memorial in March 2016 that UMass Memorial used to buy equipment, refinance previously issued debt, and complete construction and renovation projects at several of its hospitals. At the University campus, UMass Memorial used bond proceeds to build a 24-bed observation and admission unit and a 10-station dialysis center. The organization also redeveloped the former dialysis space into a private step-down unit, and built a public corridor and atrium to connect two primary patient visitor entry points. The Leominster and Fitchburg campuses also received an emergency power and combined heat power system.

“In addition to providing expert health services for thousands of residents in Worcester County each year, UMass Memorial is an important economic driver for the region,” said MassDevelopment President and CEO Marty Jones. “We are pleased to provide this financing, which will allow this health care system to make essential upgrades and give it the resources necessary to continue to serve its patients with high-quality care.”

UMass Memorial Health Care’s medical specialties include heart and vascular care, orthopedics, cancer, diabetes, surgery, newborn intensive care, pediatric services, women’s health services, and emergency medicine and trauma. The system at UMass Memorial Health Care also provides the only designated Level 1 Trauma Center for adults in central Massachusetts. UMass Memorial Health Care supports the Duddie Massad Emergency and Trauma Center of Life Flight, New England’s first hospital-based air ambulance. UMass Memorial Health Care also has the region’s only Level III Neonatal Intensive Care Unit. Four hospitals make up UMass Memorial Health Care: UMass Memorial Medical Center with its Memorial, University and Hahnemann Campuses in Worcester; UMass Memorial-Clinton Hospital in Clinton; UMass Memorial-HealthAlliance Hospital in Leominster and Fitchburg; and UMass Memorial-Marlborough Hospital in Marlborough.

MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2016, MassDevelopment financed or managed 352 projects generating investment of more than $4 billion in the Massachusetts economy. These projects are projected to create about 8,200 jobs and build or rehabilitate about 4,200 residential units.