The South Carolina Jobs-Economic Development Authority has issued nearly $2 billion in bonds in the acquisition of three hospital systems, marking JEDA’s largest transaction in its history.
Included in the acquisition by North Carolina-based Novant Health are Coastal Carolina Hospital in Hardeeville, a 44-bed acute care hospital, East Cooper Medical Center in Mount Pleasant, a 140-bed acute care hospital, and Hilton Head Hospital in Hilton Head, a 93-bed acute care hospital, according to a JEDA news release.
“The Novant Health bond issue is the single largest transaction in JEDA’s history, and JEDA is grateful to have been asked to serve as the issuer for this complex transaction. We look forward to Novant Health’s continued growth in South Carolina in the years to come,” said Jesse A. Smith, executive director of JEDA in Columbia, in the release.
The acquisition from Tenet Healthcare Corp. also includes the associated physician clinics, imaging centers and laboratory services affiliated with each of these hospitals.
The acquisition, announced in February, was originally for $2.4 billion.
“Tax-Exempt Health Care Facilities Revenue Bonds are an excellent resource for hospital systems committed to modernization and expansion and determined to keep the costs of delivering health care services as low as possible. We welcome Novant Health to South Carolina and are honored to be able to help build on its plans here. We appreciate the opportunity to work with Robinson Bradshaw and Hinson as Co-Bond Counsel to bring this transaction to a successful closing” said Alan Linkous, S.C. bond co-counsel with Howell Linkous & Nettles in Charleston, in the release.
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The acquisition retains 1,224 existing jobs in Beaufort, Berkeley, Charleston, Georgetown, Hampton and Jasper counties, according to the release.
The East Cooper Medical Center includes 15 physician clinics. Hilton Head Hospital includes the Bluffton Okatie Outpatient Center and 12 physician clinics. Coastal Carolina Hospital in Jasper County includes the Tidewatch Free-Standing Emergency Department in Bluffton.
“Access to the favorable financing provided through JEDA was a critical piece to this transaction,” Alice Pope, executive vice president and chief financial officer at Novant Health , said in the release. “We’re excited to expand our presence in South Carolina and are looking forward to providing comprehensive, remarkable care to these dynamic, growing communities.”
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