A report on how much debt can be supported by the proposed new state teaching hospital in New Orleans will be released by the first of October.
Current plans are to issue up to $500 million of revenue bonds to help finance the new $1.2 billion facility, which will be operated by Louisiana State University. However, Causey Demgen & Moore Inc. of Denver is preparing a new financial plan that is expected by the end of September. The firm also will prepare a more detailed financial analysis before any bonds are sold, officials said.
Michael Maloney, of JPMorgan’s health care division, told board members who will oversee the University Medical Center that the plan would include enhancement of the revenue bonds with mortgage insurance from the U.S. Department of Housing and Urban Development.
The hospital board authorized the consultants to file a pre-application for the mortgage insurance with the Federal Housing Administration. That is expected to occur by Oct. 15.