Milford Medical Center Buys Surgical Equipment With MassDevelopment Lease
July 31, 2012
MassDevelopment has issued a $5,036,000 tax-exempt lease on behalf of Milford Regional Medical Center, a full service community and regional teaching hospital that serves more than 20 towns. The Center will use lease proceeds to buy a variety of medical and other equipment, including a surgical robot system, operating room and information technology equipment, nuclear cameras, a picture archiving and communications system upgrade, furnishing, and fixtures. Bank of America Public Capital Corp. purchased the lease.
“This financing will help Milford Regional Medical Center improve both its patient care and training of the next generation of physicians,” said MassDevelopment President and CEO Marty Jones. “Doctors, students, and patients will all benefit from these technological upgrades, and we're pleased to partner with the Center as it streamlines and advances its services.”
Milford Regional Medical Center is a 121-bed acute care hospital that also provides a full range of clinical services, including adolescent health and women's services. The Center’s patient care center has eight state-of-the-art operating suites, consolidated surgical services, and a medical/surgical floor with private rooms, many with advanced patient monitoring capabilities. In 2007, Milford Regional opened its 54,000-square-foot cancer center that houses comprehensive cancer services from Dana-Farber and the Brigham and Women’s Cancer Center. The Center is affiliated with UMass Memorial Health Care as a teaching hospital.
Jeanne P. Lynskey, Milford Regional Medical Center’s Vice President of Finance and Chief Financial Officer, said, “The process for applying and completing the lease was smooth, timely, and resulted in an outstanding interest rate. As a nonprofit organization, we are happy to work with such a fine organization as MassDevelopment to help us achieve our goals of providing quality healthcare to our patients and community with the most advanced technology as possible.”
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.