Over $900 million in Facility Financing Approved
SACRAMENTO, Calif., March. 29, 2007 – The California Health Facilities Financing Authority today unanimously approved Sutter Health's application for over $900 million in tax-exempt bond financing to fund construction of a number of new and replacement health care facilities as well as seismic retrofits to ensure the safety of patients who use existing facilities.
Under the terms of the agreement with CHFFA, Sutter Health will provide an additional tangible demonstration of its commitment to pass along to consumers savings from the use of tax-exempt financing. Under terms of the agreement, Sutter Health will invest $4 million over six years in technology grants to rural hospitals for electronic health technology system connectivity, including support of lifesaving eICU monitoring systems. Sutter Health will invest another $4.5 million over six years to help support community clinics in Northern California.
This latest round of financing is part of a multi-billion-dollar commitment by Sutter Health to replace, improve and construct new physician offices, outpatient clinics and acute care hospital facilities in big cities and small towns all over Northern California, from rural Amador County to downtown San Francisco.
Approximately $750 million will go toward construction while approximately $160 million of the proceeds will go toward refunding long-term debt. Following is a summary of community projects covered under the bond financing application.
Ambulatory Care (Outpatient) Projects
- Sutter Gould Medical Foundation, Stockton; $35.3 million
For a new 39,000-square-foot medical office building/clinic in Stockton. Total cost of the facility is estimated at $39.3 million.
- Sutter Amador Hospital, Jackson; $18.2 million
For construction of a new 47,000-square-foot building to house imaging services, a laboratory, a diabetes clinic, a women’s health center, an endoscopy suite, an infusion center and other clinical and administrative space. Sutter Amador is a sole community provider. Total cost of the facility is estimated at $22.7 million.
- Mills-Peninsula Health Services, Burlingame; $453 million
For sitework, demolition, construction and parking related to building a new 243-bed replacement hospital. Total cost for the replacement hospital is estimated at $528 million.
- California Pacific Medical Center, San Francisco; $140 million
For seismic retrofitting of the Davies campus to meet California state seismic requirements. The project will allow for expansion of the acute rehabilitation program, renovation of the chapel and kitchen areas and the addition of new MRI equipment. Total cost for the project is estimated at $186 million.
- Sutter Roseville Medical Center, Roseville; $69.1 million
For a new 9,500-square-foot building to accommodate expansion of the neonatal intensive care unit (total cost is estimated at $10.5 million); and construction of a new 107,000-square-foot facility for acute rehabilitation and ventilator services. The total estimated cost is $58.6 million.
- Memorial Medical Center, Modesto; $20 million
For construction of the medical center’s new patient care tower, which is nearing completion. Total cost for the project is estimated at $178.2 million.