Novant Health, a North Carolina-based hospital system, is set to raise $1.9 billion through the municipal bond market next week. The funds will be used to partially repay bridge loans utilized for the acquisition of three hospitals in South Carolina earlier this year.
The acquisition, which totaled $2.4 billion, included the bridge loans that served as temporary financing for the deal. This move is part of Novant Health’s efforts to expand its presence in the region and offer high-quality healthcare services to more patients.
Hospital borrowing in the municipal market took a hit last year due to rising labor and supply costs, which weakened the finances of many healthcare facilities. However, this year, the sector has experienced a rebound, with more hospitals turning to the bond market to secure financing for expansion and other strategic initiatives.
One of the hospitals acquired by Novant Health in South Carolina was East Cooper Medical Center, which will now become part of the larger healthcare system. This move is expected to strengthen Novant Health’s position in the region and enhance its ability to provide comprehensive healthcare services to a broader population.
