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County, Hospital Authority Unite to Reduce Debt

Posted on: August 9th, 2019

Lowndes County and the Hospital Authority of Valdosta-Lowndes County are pleased to announce a joint-partnership, the impact of which will have a positive effect on the citizens of Lowndes County for years to come. 

On August 9, the Lowndes County Board of Commissioners and the Hospital Authority of Valdosta-Lowndes County met to consider final steps related to the refunding of Revenue Certificates originally issued by the Authority in 2011.  

The prospect of lower interest rates provided an opportunity for the Hospital Authority to issue Refunding Revenue Certificates to refinance existing 2011 Certificates in order to realize debt savings.  In short, the stable financial outlook assigned to Lowndes County by both Moody’s and S&P Global provides for the County to financially support the refinancing of the Authority’s debt.  The result is a significant savings to the Hospital Authority.  Further, the action does not extend the length of the debt.  

“This partnership is proof that together, we are better.  The Board of Commissioners continues to pair good policy with fiscal responsibility.  As a result, the County is able to support the positive direction in which the Hospital Authority continues to move.”

-Lowndes County Chairman Bill Slaughter

Positive benefits for the Hospital Authority include a net present value savings of $29,300,000, improved rating by Moody’s and S&P Global, and an improved financial outlook for the Hospital Authority.

“Bond refunding is a refinancing strategy to replace higher-cost bonds with cheaper debt. With favorable market conditions, SGMC estimates that it will realize approximately $5 million savings from debt payments. Refunding improves our financial sustainability by making smaller payments and frees resources for other needed expenditures.”

-Grant Byers, SGMC CFO.

“This is a victory for our patients,” explained Hospital Authority Chairman Sam Allen. 

Allen said that this joint-partnership with Lowndes County will generate savings that will enhance direct patient care across the health system.

“We are the community’s healthcare provider.  Not only is SGMC a huge economic generator, we are one of the largest employers.  By working together, SGMC and the County can improve on what already is a great resource for South Georgians.

-Sam Allen, Hospital Authority Chairman
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