Geisinger proposes Series 2019 bond issue
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.
About Geisinger
Geisinger is among the nation’s leading providers of value-based care, serving 1.2 million people in urban and rural communities across Pennsylvania. Founded in 1915 by philanthropist Abigail Geisinger, the nonprofit system generates $10 billion in annual revenues across 126 care sites — including 10 hospital campuses — and Geisinger Health Plan, with more than half a million members in commercial and government plans. Geisinger College of Health Sciences educates more than 5,000 medical professionals annually and conducts more than 1,400 clinical research studies. With 26,000 employees, including 1,700 employed physicians, Geisinger is among Pennsylvania’s largest employers with an estimated economic impact of $15 billion to the state’s economy. On March 31, 2024, Geisinger became the first member of Risant Health, a new nonprofit charitable organization created to expand and accelerate value-based care across the country. Learn more at geisinger.org or follow on Facebook, Instagram, LinkedIn and X.
