HELENA, Mont. – Clark Fork Valley Hospital in Plains will save $1.89 million over the life of a $6.17 million loan after the Montana Facility Finance Authority refinanced it into a bond at a lower interest rate and shorter repayment term.
MFFA provides nonprofit hospitals and other healthcare providers with an option for low-cost capital financing through tax-exempt bonds, which the borrowers otherwise wouldn’t be able to access. This bond was privately placed with First Security Bank of Missoula, a division of Glacier Bank.
"We are very grateful for the opportunity to partner with the Montana Facility Finance Authority and First Security Bank to accomplish this restructure of our long-term debt," said CFVH Chief Financial Officer Carla Neiman. "The transaction will save the hospital $1.89 million in cash flow over the next 20 years and free up those funds to be expended on other investments to sustain and improve health care delivery in Sanders County."
The hospital secured the original loan in 2007 and used it to construct a major addition to the building, replacing its main lobby as well as the acute care, emergency, radiology and surgery departments and doubling the size of its clinic.
Once the new space was occupied, the hospital remodeled the old space to house its administration, patient financial services, health information management and physical therapy. It also expanded its dietary area/kitchen, and made a small addition to its nursing home dining/activity space.
"Hospitals are central not only to the health of the people in the communities they serve but also to the health of their local economies," said MFFA Executive Director Adam Gill. "By continually expanding and improving their services, hospitals in Montana will be leaders in building stronger and more resilient communities across the state."