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News > Press Archive > 6-29-06 Tipton Hospital
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Critical Access Hospital Finances Expansion, New Technology
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COLUMBUS, Ohio (June 29, 2006) – A hospital, nursing home and assisted living center in central Indiana will expand and modernize with $26.7 million in bonds provided today by Lancaster Pollard.
Tipton Hospital was built in 1950 under the Hill-Burton act. It will add 28,000 square feet of space to house its new radiology and emergency departments, which will take advantage of advances in health care technology and medical practices to create a more efficient and modern delivery platform.
“I haven’t met one patient yet who expects a lower standard of care because they’re getting cared for in a small rural hospital. Certainly from a consumer’s point they expect quality care in a quality facility,” said Michael Harlowe, Tipton’s president. “This most recent bond issue is allowing our hospital to substantially replace major functions to allow that to occur for another 56 years.”
Tipton Hospital includes a 25-bed critical access hospital, a 50-bed nursing home and 40 assisted living units. In addition to the expansion, it will add a physical therapy building to its medical arts building and improve the campus’ infrastructure.
Lancaster Pollard issued and underwrote the largely tax-exempt financing. The firm also helped Tipton Hospital secure a letter of credit enhancement with no mortgage obligation and an automatic renewal, or evergreen, feature. The enhancement allows the hospital to borrow at a low “AA-/A-1+” rate and save on interest payments over the bonds’ term.
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