Sanford Health
PIERRE, SD (WSAU) — Sanford Health System has received initial approval to issue up to $1 billion in bonds to support its recent acquisition of Marshfield Clinic Health System.
The South Dakota Health and Educational Facilities Authority voted to approve the borrowing on Wednesday. It would allow Sanford to restructure its debt obligations and pay for construction projects in multiple states, according to a report from South Dakota Searchlight.
The bonding package would be the largest in the history of the SDHEFA, which issues tax-exempt bonds to non-profit hospitals and public universities, allowing those institutions to borrow money at reduced costs.
No taxpayer dollars will be used to complete the transaction, and the state will not be left holding the bag should Sanford fail to repay the debt.
Officials with Sanford say they may come back to the Authority in the future for up to $2.1 billion in long-term bonds to cover more projects while restructuring the original bonds.
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