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Tuesday, Aug. 18, 1998
Bonds to help fund Incarnate Word system projects
$50 million earmarked for Spohn facilities in area
By JEFFREY TOMICH
Staff WriterIncarnate Word Health System plans to spend $50 million over the next two years to establish and expand Spohn Health System facilities services in the Coastal Bend.
Projects include a $20 million hospital already under construction in Alice; a new clinic in Portland; expansion of Spohn's cancer center in Corpus Christi; and expansion of behavioral medicine programs.
Other plans include replacing medical equipment; building a new, centralized laundry facility that would serve all of Spohn's Coastal Bend facilities; upgrading emergency room power at Spohn Shoreline Hospital; and expanding and improving obstetric services at Spohn Kleberg Hospital in Kingsville.
To finance the projects, San Antonio-based Incarnate Word has applied to the Coastal Bend Health Facilities Development Corp. to issue up to $150 million in revenue bonds.
Up to $65 million in bond proceeds would be used to restructure existing debt and another $35 million would be used to pay for Incarnate Word projects in San Antonio and Paris, said Linda McClung, vice president of communications for the Catholic health system.
The Health Facilities Development Corp. is a financing authority run by a nine-member, City Council-appointed board. State law gives the board power to issue tax-exempt bonds for health-related projects.
Jack Solka, chairman of the Health Facilities Development Corp., said bonds would be guaranteed by the holder, Incarnate Word, not the city or any other taxing entity.
Though not all of the anticipated projects are in the Coastal Bend, McClung said, it's more effective for Incarnate Word to seek financing from a single source.
The system approached the Coastal Bend Health Facilities Development Corp. to facilitate the financing of the projects because the largest sum of money will be spent in this area.
``Since the bulk is going to be in Corpus Christi, we did it there,'' McClung said. ``In the past, we've done it in other markets.''
Projects to be funded with bond proceeds are part of Incarnate Word's broader growth strategy, she said.
``Incarnate Word is and has been in a growth mode and a strengthening mode for some time,'' she said.
Anthony Heep, Spohn's chief operating officer, said some of the plans outlined in the bond proposal are tentative. Others, like the Alice hospital, already are well under development.
Heep said Spohn intends to build a new clinic in Portland, though it's uncertain what type of facility it will be. The system currently has $1 million set aside for the project, but could later approach Incarnate Word about increasing that amount.
Spohn already operates Gulf Coast Medical Clinic in Portland. However, Heep said: ``We think Portland does need another medical facility and more access to health care than what's afforded now.''
McClung said bond proceeds would cover ``all major work through 1999 or early 2000.'' The system may take on smaller additional projects which it finances itself, she added.
A vote by the Health Facilities Development Corp. on the bond sale likely won't occur for another six weeks. If approved, it could be six weeks after that before any bonds are sold, he said.
Staff writer Jeffrey Tomich can be reached at 886-4316 or by e-mail at tomichj@scripps.com
Bond-funded Spohn work
Proceeds from a bond sale would be used to pay for the following Spohn projects in the Coastal Bend:
Construction of Spohn Alice Hospital, $20 million.
Expansion of facilities and services at the Rachel Vaughan Cancer Center, 1415 Santa Fe St., $3 million-$3.3 million.
Construction of a centralized laundry facility to serve Spohn facilities, $2.8-$3 million.
Construction of a new medical clinic in Portland, $1 million.
Expansion of Spohn's behavioral medicine program, $900,000.Post your comments about local news eventsFront Page || Main Index || News || Business || Texas || South Texas Outdoors || Birdwatching || Sports || Entertainment || Selena || Education || South Texas Attractions || World Wide Web