St. Rose Hospital received $20 million in capital from UnitedHealth Group (NYSE:UNH) and its PacifiCare of California subsidiary to further the hospital's efforts in delivering quality, affordable health care services to the communities it serves in Alameda County (see also UnitedHealth Group).
The $20 million purchase of St. Rose Hospital's taxable and tax-exempt bonds is part of UnitedHealth Group's California Health Care Investment Program, a 20-year, $200 million commitment to provide access to capital for entities throughout the state that provide vital health care services to their communities.
The hospital will use a portion of the proceeds of the bonds, together with its own funds, to: build out the second floor of the Sherman L. Balch (formerly St. Joseph) Pavilion; complete a seismic retrofit for the Hospital's main facility; remodel the fifth floor of the hospital's main facility to add 30 single-patient rooms; and acquire necessary capital equipment.
Loan insurance backing from the Cal-Mortgage Loan Insurance Division of the Office of Statewide Health Planning and Development (OSHPD), along with the participation of UnitedHealth Group provided the hospital with lower-cost financing for the overall $42 million bond issue.
'St. Rose Hospital provides critical care for Alameda County citizens,' said Sen. Ellen M. Corbett (D-San Leandro). 'It is wonderful that the community and UnitedHealth Group were able to come together so that the neighborhood will be able to depend on this vital resource for years to come.'
'Alameda County has experienced tremendous growth since the day St. Rose Hospital opened its doors in 1962; therefore it is vital that we expand our services and resources to meet the increasing needs of our communities and the residents we serve,' said Michael Mahoney, CEO of St. Rose Hospital. 'We thank UnitedHealth Group and Cal-Mortgage for helping us to continue meeting the vital health care needs of our communities.'
'Absent the critical support from all the community partners and UnitedHealth Group, this transaction would not have been achievable,' said Dr. David Carlisle, OSHPD director. 'This is an excellent example of what can be accomplished, even under fiscally challenging circumstances, when a community comes together and becomes involved in a very tangible way.'
'UnitedHealth Group is committed to investing in California's health care infrastructure to help ensure that all Californians have access to quality care. We are pleased to be able to help St. Rose Hospital meet its growing community's health care needs, and we believe it is essential that Alameda County residents continue to have this important health care resource in their community,' said Ben Slocum, CEO, UnitedHealthcare of Northern California.
UnitedHealth Group offers health benefits, including commercial and Medicare health plans, to more than 3 million Californians, and partners with about 50,000 physicians across the state. About St. Rose Hospital Established in 1962, St. Rose Hospital is an independent, not-for-profit, community hospital governed by a local Board of Trustees. With 163 licensed beds, over 1000 employees and 300 physicians, St. Rose and provides a comprehensive array of inpatient and outpatient services including 24-hour Emergency services, medical, surgical and rehabilitative services, a skilled nursing facility, family birthing center and community outreach programs at the Silva Pediatric Clinic. St. Rose has made an investment in the community to improve cardiovascular health and is designated as a Cardiac Receiving Center for Alameda County to provide emergency angioplasty and life saving non-invasive procedures to diagnose and treat heart attacks. About OSHPD As one of thirteen departments within California's Health and Human Services Agency, OSHPD is committed to 'Equitable Healthcare Accessibility for California.' OSHPD analyzes and supports the state's healthcare infrastructure, promoting medical care transparency for Californians. OSHPD also supports a diverse and culturally competent workforce, ensures safety of buildings used to provide healthcare, insures loans to develop healthcare facilities, and facilitates development of a sustained capacity for communities to address their healthcare concerns. About Cal-Mortgage The Cal-Mortgage Program was authorized in 1968 to provide access to private capital for non-profit and public entity healthcare facilities within California without cost to taxpayers. Since its inception, the Cal-Mortgage Program has insured more than $6 billion in health facility construction financing that has contributed to the development of California's healthcare infrastructure. About UnitedHealth Group UnitedHealth Group is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, OptumHealth, Ingenix, and Prescription Solutions. Through its family of businesses, UnitedHealth Group serves more than 70 million individuals nationwide.
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Keywords: UnitedHealth Group, Health, Hospitals, Professional Services, Insurance, Construction and Property, Commercial Building and, Insurance, Mortgage, Real EstateCommunity Health, Critical Care.
This article was prepared by Biotech Week editors from staff and other reports. Copyright 2009, Biotech Week via NewsRx.com.
