Greene County General Hospital is saving significant money through a bond refinance that will provide an overall $963,000 in net present value savings, or 15.3% of the previously outstanding bond amount. In addition, the bond issue provides $8 million in new funding for new construction and capital projects at GCGH. Declining interest rates and a “A+” rating from S&P based on Greene County’s support for GCGH, prompted the GCGH Board of Trustees to refinance the original bond which was issued to finance the 2013 Hospital expansion. Nate Abrams, President of the Greene County Commissioners and Vice Chair of the GGGH Board stated, “the Hospital is a vital part of our County and the new funding from this bond issuance is an investment in our community.”
Planned use of the funding includes the purchase of real estate currently housing the My Linton Clinic and the My WestGate Clinic. The purchase of these facilities will result in ongoing savings in rental expenses for GCGH. The Hospital Board is also working on plans for construction projects, including updating the parking lot and expanding the GCGH Radiology department to include an MRI suite and an additional Ultrasound Suite. Construction on these projects is planned to commence in late 2021. GCGH CFO, April Settles, says the refinancing procedure, “makes sense given the lower interest rates and the refinance also frees up additional funding for projects. Any increases in our annual bond payments because of the new projects will be effectively offset by reductions in our rent expenses for the two clinics.” It is important to note that the additional funds can only be used to finance capital projects, purchase new equipment, or upgrade existing equipment, per the structure of the bond. GCGH Board Chair, Mike Crane, says “the new projects will greatly serve Hospital employees and our community by providing much needed improvements, expansions and equipment to the Hospital.”
