According to our county hospital’s 2014 financial statements the hospital has already sold the $150 million of bonds that are to be used to finance the new outpatient clinics.
Interest rates according to the auditor’s report are between 3 and 5 percent. Using 4 percent as the average we are now paying $6 million each year to handle the interest.
None of us have seen a clinic springing up anywhere yet the bonds have already been sold and we are paying interest.
The financial ratings firm Fitch recently warned that the hospital district’s credit rating is being evaluated and may be lowered. The mess with the children’s hospital is evidently the prime cause.
Why were the bonds sold so much before the construction money was needed? Could it be that the administrators at the county hospital knew that their financial condition would ultimately lower their credit rating and make the bonds more expensive?
What will the buyers of the bonds think if they learn that they bought bonds not being told that the hospital’s financial situation would soon worsen? Have they been cheated?
Might we see some federal agency looking into this?
We deserve better