Beverly Hospital in Montebello, Calif., has issued a $39.7 million tax-exempt revenue bond from the California Statewide Communities Development Authority.
The bond proceeds will be used to fund various expansion programs. Beverly Hospital's current plan for fiscal years 2015 through 2018 calls for total capital spending of approximately $36.7 million, which will be funded partly by the bond. The bond proceeds will also be used to reduce the 224-bed hospital's existing debt.
Standard and Poor's Rating Services assigned a "BBB-" long-term credit rating to the revenue bond. S&P also rated Beverly Hospital's financial outlook stable.
Beverly Hospital CFO Larry Pugh said the hospital's current fiscal condition allowed it to apply for the revenue bond. "Our current financial condition, based on two years of positive growth and stability, played a key role in the Authority issuing the bond," said Mr. Pugh. "All parties expressed confidence in our long-term outlook and expansion program to serve our communities with high-quality healthcare for many years to come."
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