From University Medical Center:
The Lubbock County Hospital District has paid the bonds issued for the UMC East Tower, paying them in just three years and saving more than $12 million in interest.
UMC made the final payment on $26.3 million in bonds in March, money that helped finance the cost of the $46 million East Tower in 2010. UMC is now debt free.
"The UMC Board of Managers made the decision to borrow part of the cost of the East Tower project because of uncertainty in both the economy and federal healthcare reform," said Terrell Thrasher, UMC Vice President of Finance. "Since then, UMC has recorded profitable years because of sound financial planning and the efforts of staff to reduce expenses. The board felt the wise decision at this point was to pay off the bonds early from cash reserves."
It's the second time UMC has paid off bonds early to save money on interest payments. Money borrowed to build the fifth and sixth floors of the hospital were also paid ahead of schedule.
The UMC East Tower doubled the square footage of the hospital when it opened in 2012. The first and second floors of the tower house the UMC Family Birth Center, Neonatal Intensive Care Unit and Family Care Center. Since the tower opened, births at UMC have increased 11%. Births are up 13% compared to this time last year.
The third and fourth floors of the tower are shell space for future expansion. Plans to best utilize the empty floors are still being developed.
UMC Health System is the leader in comprehensive healthcare deliver in West Texas and Eastern New Mexico. Founded in 1978, it is home to the region's only Level I trauma center, the Timothy J. Harnar Burn Center, the UMC Heart Center, the UMC Southwest Cancer Center and the UMC Children's Hospital. UMC was ranked the Best Place to Work in Texas by the Best Companies Group in 2013, and received the Outstanding Patient Experience Aware from HeathGrades in 2013.