The Logansport Memorial Hospital Board of Trustees approved a bond refinancing proposal at the February 25, 2013 board meeting. The LMH Letter of Credit is scheduled to expire in May 2013.
In preparation for changes resulting from the expiration of the Letter of Credit, LMH entered into an agreement with Lancaster Pollard to facilitate the process of marketing the hospital’s refinancing and near term capital projects to banks and investors. Proposals were received from multiple institutions.
“Logansport Memorial Hospital is in a very strong financial position for the refinancing project. Since 2011, LMH has seen a significant margin increase and growth of days cash on hand, which has made us attractive to lenders”, said Julia Berndt, CFO. “Quality scores have risen at the same time our cash position has improved, giving us a further competitive advantage. Our organizational success is due to the hard work of our physicians and employees, along with continual process improvements,” she says.
“The infusion of cash will allow Logansport Memorial Hospital to maintain a competitive edge in the region while remaining an independent county hospital”, commented David Ameen, CEO. “Capital upgrades over the next three years may include upgraded in-patient/ER monitoring systems, laboratory equipment, CT Scan, as well as new generators, which are currently being installed.”
The next step in the process will be to negotiate terms of the agreement with the selected bank and appear before the Indiana Health Facility Financing Authority. The Board has appointed a Bond Committee which is comprised of David Ameen, President/CEO, Julia Berndt, CFO and Darryl Hoover, LMH Board of Trustees President and Todd Weinstein, MD and BOT member.