Novant Health has announced plans to enter the municipal bond market next week in order to secure $1.9 billion in funding. The North Carolina-based hospital system intends to use these funds to partially repay the bridge loans used for the acquisition of three hospitals in South Carolina earlier this year, which totaled $2.4 billion.
The decline in hospital borrowing in the municipal market last year was significant, as facilities faced challenges from rising labor and supply costs. However, this year has seen a resurgence in the sector, with more hospitals seeking financing through the bond market. This move by Novant Health reflects the ongoing financial challenges faced by healthcare systems across the country and highlights the importance of strategic financial planning to ensure sustainability of hospital operations.
By tapping into the municipal bond market, Novant Health can address its financial needs while continuing to provide quality care to patients.
