Parkland Plans Last $42M Issue for New Dallas Hospital

DALLAS — Dallas' Parkland Hospital Board on Tuesday approved $42 million of bonds to complete construction of a $1.3 billion hospital by 2015.

The new hospital tower, rising across the street from the crowded current facility built in 1954, has been financed mostly with Build America Bonds issued in 2009.

The Dallas County Hospital District issued $705 million of bonds in August of that year, with all but $26.1 million issued as BABs.

Voters in November 2008 overwhelmingly approved $705 million of general obligation bonds and $42 million of revenue bonds for the new Parkland Hospital. The vote added 2.5 cents to the district's tax rate of 27 cents per $100 of assessed value to support the bonds, and another cent for hospital operations.

The hospital district's financial advisor, Chris Jennings of First Southwest Co., said the last installment of the debt should be issued around Oct. 1, which should be soon enough to take advantage of historically low interest rates.

Parkland has suffered a $3 million reduction in federal government reimbursements because of sequestration cuts by Congress, officials told the board. The cuts aren't expected to be restored.

Texas Gov. Rick Perry has also rejected federal funds to expand Medicaid in the state, adding pressure to counties like Dallas, which must cover the cost of indigent care. The Dallas County Commissioners Court, which oversees Parkland's budget, must give final approval to the bonds.

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Healthcare industry Texas
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