Tax-exempt lease financing for United Health Services Hospitals, Inc, Provides Cost-Effective Financing for Health System Covering Six New York Counties
The Dormitory Authority of the State of New York (DASNY) today finalized the second of two tax-exempt leases totaling $7.57 million with United Health Services Hospitals Inc., a Binghamton-based health care system that encompasses four hospitals, long-term care and home care services in New York’s southern tier and M&T Bank.
DASNY’s Tax Exempt Leasing Program (TELP) is a vehicle to enable healthcare, educational and other approved nonprofit entities to cost-effectively finance equipment including technologies to keep their systems up-to date.
This tax-exempt lease between United Health Services Hospitals, Inc. and M&T Bank will finance purchases of information technology infrastructure, a CT machine, and other critical hospital equipment.
DASNY President and CEO Robert J. Rodriguez said, “Providing less costly, tax-exempt financing options to healthcare providers enables these providers to devote more resources to patient care rather than financing costs. DASNY is proud to be able to offer this option to benefit New York’s healthcare industry and consumers.”
John Kleespies, System Controller for United Health Services, Inc., said, “The TELP partnership between UHSH, DASNY and M&T Bank has allowed UHSH to provide essential equipment at affordable financing rates, enhancing our ability to better serve the community. With the addition of operating room equipment, a CT scanner, IT infrastructure upgrades, MRI enhancements and other medical technologies, we can provide patients and their families with stable, safe and state-of-the-art healthcare. In this instance, TELP has proven to be more advantageous than traditional financing options.”
Bond counsels for the transaction are Hodgson Russ and Holley Pearson-Ferrar.
United Health Services Hospitals, Inc. operates primary care centers throughout Broome, Chenango, Delaware and Tioga, Otsego, and Sullivan counties, plus school-based health centers that offer primary and preventive care to students in the region. UHS cares for two-thirds of the population of the Southern Tier region and produces $1.3 billion a year in total non-profit economic impact. With a 6,300-member work force across 60 locations, UHS is one of the region's largest employers.
Founded in 1944, DASNY is New York State’s capital project development authority. It finances and constructs sustainable and resilient science, health and education institutions that help New York thrive. It is one of the largest issuers of tax-exempt bonds in the nation with an outstanding bond portfolio of approximately $55.8 billion as of March 31, 2024. DASNY is also a prolific public builder with a construction pipeline of approximately 1,000 projects valued at more than $12 billion as of March 31, 2024. To learn more about DASNY, visit www.dasny.org.