Anaheim : Preliminary OK Given for Hospital Financing

The City Council gave preliminary approval Tuesday to a plan to help Western Medical Center obtain low-cost financing for $30 million in extensive renovations, new equipment and expansion of several clinics.

Under the plan, the city would issue “certificates of participation” at a much lower interest rate than the hospital could obtain. The city will not be held liable for any debt payments and would be reimbursed for all costs related to the financing, expected to range from $7,000 to $10,000, city Finance Director George P. Ferrone said.

The city has undertaken similar financing plans in the past, most notably when it helped Martin Luther Hospital refinance a debt several years ago.

Most of the $30 million will be used to refinance Western Medical Center’s existing debt of $20.7 million, which was expected to save the hospital more than $11 million in the next 25 years, Ferrone said.

Hospital officials said nearly $7 million is to be used to expand the hospital’s coronary intensive care unit; to add a second, specialized cardiac treatment laboratory; to add an inpatient rehabilitation unit for acute patients, and to renovate and enlarge operating rooms, a locked psychiatric unit and the pharmacy.

Hospital administrator Carolyn Gillespie said the financing plan will benefit the city by expanding the quality of health care and increasing the number of jobs.