• Refinancing approximately $150 million in existing debt through Catholic Health Initiatives, one of TriHealth’s sponsors.
• Buying out capitalized leases of nearly $200 million.
• Investing approximately $80 million in new funds to reimburse previous capital expenditures and to provide funding for the expansion of the TriHealth ambulatory network.
“The move will save TriHealth millions of dollars through securing lower interest rates and buying out less-efficient capitalized leases,” the hospital said in a release issued late Tuesday. “In addition, some of the proceeds will be put toward the reimbursement of previous capital expenditures and provide funding for expansion of the TriHealth ambulatory network.”
The hospital issued the statement on Tuesday after a lawyer representing TriHealth met with the Warren County Board of County Commissioners about an agreement between TriHealth and the counties supporting issuance of $430 million in bonds for the hospitals.
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Josh Grossman, a lawyer with Dinsmore & Shohl, said some of the money would be used at Bethesda Arrow Springs, a satellite facility in Lebanon. According to the agreement, $140 million would be used to “refund and retire” a loan for equipment and construction of hospital facilities.
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Commissioner Dave Young emphasized that although the board approves the tri-county agreement with Tri-Health, the hospital company, rather than the counties, was liable for paying off the debt on the bonds, to be issued through the Hamilton County Hospital Commission.
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In addition to Arrow Springs, TriHealth owns hospital facilities in Oxford and Hamilton, as well as Bethesda Hospital in Hamilton County.
Bethesda Arrow Springs opened in 2005. In 2012, TriHealth purchased and expanded the former Butler County Medical Center in Hamilton.
In 2015, TriHealth finalized plans to take majority ownership in McCullough-Hyde Memorial Hospital in Oxford.
On Tuesday, the Warren County commissioners agreed to sign the new tri-county agreement. Hospital officials did not respond to requests for comment after the meeting.
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