Municipal Finance
Albert Einstein Healthcare Network

Einstein Healthcare Network (AEHN) and its predecessor organizations have been serving the greater Philadelphia area for over 140 years. The network provides comprehensive, high quality care to area residents through a network of acute care hospitals, inpatient and outpatient rehabilitation facilities, and long-term care services. The majority of its patients are from economically challenged areas of the city.

In order to diversify its patient mix and expand in a growing market, AEHN decided to build a new regional medical center in nearby Montgomery County. This new state-of-the-art hospital will have 146 beds and offer a full range of inpatient and outpatient services. To help realize this vision, AEHN turned to Goldman Sachs.

Working closely with the network’s board, management and advisors, the Goldman Sachs banking team developed an innovative financing strategy that allowed AEHN to refinance its existing bonds and then issue new debt through a subsidiary, New Regional Medical Center. This organization issued over $300 million of bonds to fund the construction at an attractive cost of capital. The bonds were issued in June 2010, and the construction of the new hospital and the facility is scheduled for completion in 2012.

This project is expected to have a significant economic impact on the region, providing new jobs at a time of ongoing unemployment. And over the longer term, it will help AEHN grow stronger, providing superior healthcare to people across the greater Philadelphia area.

Source: Albert Einstein Health Network