“There is no (financial) pledge of the counties being made here,” she told the commissioners Monday. “The funds are supported through a revenue pledge of the hospitals involved.”
Kaleem said because of Butler County’s role, Montgomery and Greene counties are not issuing bonds. Butler County will get a $50,000 administrative fee.
Working with the three counties “is the most efficient way” to borrow $190 million, said Bob Jackson, spokesman for KHN, the parent company of The Fort Hamilton Hospital.
“In Ohio, it’s the most efficient method to issue bonds,” Jackson said. “It’s very clear in the documents that only KHN is responsible for repaying the money.”
The money from the bonds will support “a number of different projects,” said Kettering Health Treasurer Ed Mann at Monday’s commission meeting.
He said the Soin Medical Center in Beavercreek and Grandview Medical Center expansion — which is under construction — in Dayton will benefit from the funds. It will also fund projects on the land recently purchased in Fairfield Twp. and capitalize Fort Hamilton.
“When (Fort Hamilton Hospital) joined our network, they didn’t have any debt, they didn’t have any cash, so we’re trying to properly capitalize them,” Mann said.
In March, KHN purchased 135 acres in Fairfield Twp. at the Ohio 129 and Bypass Ohio 4 interchange. The land purchase is part of KHN’s plan to be within a 10-minute drive of its sub-market sectors.
Issuing bonds, Butler County Commissioner Don Dixon said, is an economic development tool.
“Not all the money is going to be spent in Butler County, but we’ll get what we can get,” Dixon said. “It’s good for the county, it’s good for the hospital.”
Dixon and commissioner Chuck Furmon said this type of deal has been done in the past with area hospitals.
“We’d like to see them succeed,” Furmon said. “There’s never been a hitch.”
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