Geisinger Health System was given the green light Wednesday to proceed with several projects in Schuylkill County as part of a $230 million investment in new health care facilities and equipment across eight counties.
Geisinger Authority, which was established to finance certain capital projects of Geisinger Health System and other nonprofit organizations within the county, will proceed with issuing a bond for $230 million. Another $570 million of bonds may be used to replace existing debt if interest rates are favorable for a total bond issuance of up to $800 million.
However, a total of more than $300 million is unlikely to be issued, according to representatives from Geisinger Health System.
In accordance with state and federal law, Geisinger officials were at the Schuylkill County commissioners' work session Wednesday to request a resolution permitting the use of funds within the county and acknowledgement that the bonds are "desirable for the health, safety and welfare of county residents."
County approval is required under the Tax Equity and Fiscal Responsibility Act of 1982 and the Municipal Authorities Act of 1945.
The Schuylkill County commissioners unanimously approved the resolution Wednesday after a public hearing earlier in the morning and short recess during the meeting.
Proceeds from the proposed bond will be used to benefit patients served by Geisinger through the acquisition, renovation and construction of buildings and equipment in eight different counties: Centre, Columbia, Lackawanna, Luzerne, Montour, Northumberland, Schuylkill and Union. After approval, counties assume no responsibility of the bond.
David Cutright, director of treasury operations, said that as of Wednesday, bond proceeds have not been allocated for individual counties.
"Geisinger serves nearly 39,000 Schuylkill County residents," Lorien Beishline, operations manager in Schuylkill County, said. "We work with Schuylkill Health to provide pediatric hospitalists, an eICU program and will soon open a $2 million cancer center at Schuylkill Medical Center."
Geisinger is expanding its hematology/oncology cancer services in a newly renovated suite located within Schuylkill Medical Center-East Norwegian Street. Geisinger Medical Center is leasing 5,531 square feet for the $2 million clinic, which will be operated by Geisinger staff. The practice will have an eight-bay treatment room with capabilities for IV infusions, injections, hydrations and bone marrow biopsies as well as an on-site pharmacy.
Geisinger is also constructing a new 17,000-square-foot building in Orwigsburg that will house radiology and pharmacy, both new services to that part of the county. The new facility more than triples the size of the current clinic and will feature state-of-the-art exam rooms, spacious registration and waiting areas, and have additional space for future growth. It will open Aug. 5.
"We also work with the Schuylkill Alliance to provide uninsured and underinsured patients access to a primary care physician at a reduced rate," Beishline said.
Geisinger also plans to acquire, construct, equip, renovate or install health care facilities at the following locations in Schuylkill County: 31 S. Main St., Mahanoy City; 701 W. Oak St., Frackville; 100 Schuylkill Medical Plaza, Pottsville; 529 Terry Reily Way, Pottsville; 100 One Norwegian Plaza, Pottsville; 300 Hollywood Boulevard, Orwigsburg; and 700 E. Norwegian St., Pottsville.
"Our goal is to continue to bring specialized services to Schuylkill County so that residents don't need to travel far from home to receive care," Beishline said.
The use of bond funds also needs approval by the Geisinger Health System Foundation Board of Directors and the Geisinger Authority. Repayment is based on the credit of Geisinger Health System, which currently has a rating of "Aa2" from Moody's Investors Service and "AA" from Standard & Poor's Ratings Services.
