Confluence Obligated Group
Application Acceptance: November 22, 2019. Please note all information provided below is as of the date of the application submission with the exception of Loan Size & Closing Date.
Obligor: Central Washington Health Services Association (dba Central Washington Hospital), Wenatchee Valley Hospital and Confluence Health are an integrated healthcare delivery system that includes two hospitals, more than 40 medical specialties and primary care, to provide comprehensive medical care throughout North Central Washington. With over 290 physicians and 160 advanced practice clinicians, the system is a major medical provider between Seattle and Spokane. The goal is to deliver high-quality, safe, compassionate, and cost-effective care close to home. Staying on the leading edge of healthcare innovation is important, so we invest in technology – to provide better care for our patients and allow our providers to operate at the highest level.
The applicants are also pursuing the expansion of the obligated group. Currently, the obligated group consists of Central Washington Health Services Association. Subsequent to affiliation, Central Washington Health Services Association’s operating results were evaluated by the rating agencies in conjunction with those of Wenatchee Valley Hospital and Confluence Health. As a result of the evaluation, the organizations have determined that expansion of the obligated group is reasonable based on the vision and mission of all three organizations.
Loan Size: $40,000,000
Description of Loan: The proceeds of the loan will be used to (1) reimburse Confluence for prior capital expenditures, including the construction of a parking garage which adds 500 additional parking spots; (2) remodel an existing post-anesthesia care unit at Central Washington Hospital; (3) remodel existing space for urology expansion; (4) purchase various equipment; and (5) potentially pay issuance costs.
Interest Cost Savings: Central Washington Health Services Association; Wenatchee Valley Hospital; and Confluence Health estimates that they will save approximately $2.38MM in interest costs over the life of the proposed bond issue by financing at tax-exempt rates compared to taxable rates. All proposed projects and equipment will directly benefit patients of Central Washington Hospital, Wenatchee Valley Hospital, and Confluence Health. These items are specific to the ongoing operations of each entity and benefit the patient population entirely.
Purchaser: Bank of America, N.A.
Closing Date: February 27, 2020