LIMA — Bon Secours Mercy Health-St.Ritas entered into an annual partnership with the Allen County Commissioners on Thursday Morning. According to the resolution, the goal is to determine the necessity of and authorize the issuance of hospital facilities and revenue bonds.
A hospital revenue bond is a type of municipal bond that is issued to raise financing for the construction of a hospital, nursing home or other hospital facilities, according to the corporate finance institute.
“We do separate hearings in all of the 12 counties we have facilities in,” said Reginald Staples, Lawyer/Partner of Dinsmore Shohl Bons Council with Mercy Health. “Since Allen County is the issuer you also have to pass a bond resolution for the actual issuant of the bonds themselves. The not-to-exceed amount is $300 million. The payment from the bonds comes from Mercy Health. Allen County is not on the hook (or responsible) they are just a conduit issuer of financing. It is a requirement by Ohio Revised Code and Tax Code. They cannot issue their own tax-exempt financing. They have to use a political sub-division such as the county to issue and take advantage of taxes in bonds.”
Allen County Commissioners are not at financial risk nor do taxpayers fund this bond.
”We grant Bon Secours Mercy Health-St. Ritas the ability for bonds to be issued through the County,” said Allen County Commissioner Beth Seibert. “It is a part of economic development. This is a tool we use to assist the industry/the hospital. To me, it is important to keep Mercy Health here and functioning well.”
Commissioners also thanked members of the health field for their work across Ohio and Allen County.
“The work that Dinsmore does on behalf of the entity, thank you for that,” said Allen County Commissioner Cory Noonan. “We appreciate that and what the facility does across the state. We have refinanced a couple of times over the course of a couple of years and we always need medical professionals and what is done. All of our medical facilities in the area do a great job. Just happy to be part of what we can do to assist.”
“I think I speak for the entire team at Mercy Health,” added Staples. “We are just so thrilled to have a partnership with the County to help. I know you all have done this before in the past and we just really appreciate it.”
For more information visit bsmhealth.org.