Orlando Health has announced it intends to issue up to $200 million in bonds to refinance its purchase of Sebastian River Medical Center and to make improvements to the hospital, as part of a larger $1.5 billion investment in its hospital network.
The plan was set to be discussed this past Tuesday at the Indian River County Commission meeting as a legal formality since the hospital is located within the commission’s jurisdiction.
Indian River County Attorney Jennifer Shuler, in a memo to the Board, wrote, “Orlando Health proposes to issue the Hospital Revenue Bonds, in an amount not to exceed $200,000,000, to refinance the purchase of acquiring Sebastian River Hospital and to pay for improvements and equipment for its hospital facilities.”
Shuler explained that the bonds in no way obligate the taxpayers, but the revenue code requires a public hearing about the bonds in each county where the hospitals are located.
“The tax-exempt bonds to be addressed in the Indian River hearing Tuesday, Dec. 17, 2024, will be used primarily to refinance the short-term taxable bonds Orlando Health issued to purchase the hospital in Sebastian River and the two other hospitals located on the east coast of Florida,” Orlando Health spokesperson Katie Mitzner said on Monday.
“Land improvement costs, working capital expenditures and equipment mentioned in the public hearing notice refer to minor cosmetic work such as painting and landscaping. As we learn more about the facility and its operations, some portion of the funds could also be used to address unexpected equipment repair or replacement.”
Inspections ordered by a federal bankruptcy court this summer revealed some potentially pricey repairs needed to the hospital’s major systems, including the boiler and HVAC equipment and the fire alarm.