Geisinger expects to use the financing to fund new health care facilities and equipment, and to replace existing debt if interest rates are favorable. Proceeds from the proposed bond issue will be used to benefit patients served by Geisinger through the acquisition, renovation and construction of buildings and equipment in eight different Pennsylvania counties: Centre, Columbia, Lackawanna, Luzerne, Lycoming, Mifflin, Montour, and Northumberland, and also in Atlantic County in New Jersey.
Geisinger officials are meeting with the Commissioners and council members in each of these counties, requesting passage of a resolution permitting the use of the bond funds within that county and acknowledging that the issuance of the bonds is desirable for the health, safety and welfare of county residents. County government approvals are required under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and the Municipal Authorities Act of 1945.
Any plans for the use of the bond funds are also subject to approvals by the Geisinger Health Board of Directors and the Geisinger Authority. Repayment of the bonds is based on the credit of Geisinger, which currently maintains credit ratings of “Aa3” with a stable outlook from Moody’s Investors Service and “AA” with a stable outlook from Standard & Poor’s Ratings Services.
The Geisinger Authority is a corporation organized by the Commissioners of Montour County, Pennsylvania, and is only obligated to pay the bondholders any money received from Geisinger intended for payment of the bonds. Geisinger Authority, Montour County, and the counties providing the requested approvals are not liable for the repayment of the Series 2019 bonds, and no taxing power is pledged for their repayment.
Geisinger is committed to making better health easier for the more than 1 million people it serves. Founded more than 100 years ago by Abigail Geisinger, the system now includes 10 hospital campuses, a health plan with more than half a million members, a Research Institute and the Geisinger Commonwealth School of Medicine. With nearly 24,000 employees and more than 1,700 employed physicians, Geisinger boosts its hometown economies in Pennsylvania by billions of dollars annually. Learn more at Facebook, Instagram, LinkedIn and Twitter.