Five local banks in the Grayson County area recently united in a bid and subsequent purchase of 20-year, $12.5 million Build American Bonds (BABs) which were issued in 2009 by Twin Lakes Regional Medical Center (TLRMC) to pay for renovations.
Bank of Caneyville, Bank of Clarkson, Cecilian Bank, Leitchfield Deposit Bank, and Wilson and Muir Bank & Trust collaborated in the bid and purchase, which will result in a 2.2% decrease in interest paid by the hospital on these bonds.
According to a recent press release, “The combined bid by the banks of 3.25% fixed for 15 years was the best submitted and the bonds were sold to the local financial institutions.”
This purchasewill save TLRMC more than $1.7 million. According to Bill Oldham, TLRMC’s Director of Planning and Marketing, the hospital has “been on sound footing for the last 6-12 months,” and Oldham continued, “right now, we’re pretty solid.”
However, TLRMC CEO, Wayne Meriweather, MHA, said, “In a time of financial instability for hospitals all around the country, the refinancing of our bonds is one way to reduce expenses and maintain our financial viability. For our local banks to partner together in this way is unprecedented. Their support for our hospital shows a real commitment to our community and our mission of healing the sick and relieving pain and suffering.”
TLRMC Chief Financial Officer, Scott Arndell expects the hospital’s savings will be reinvested into patient care.
“Over the last several years the survival of our hospital has been due to our employees working harder and harder with almost no additional pay,” Arndell said.
Arndell also stated, “The savings realized by refinancing the bonds will make it possible for us to spend more on our employees and buy additional equipment for them to treat our patients.The people of our communities are the real winners with this action.”
According to the press release, Arndell is grateful for the joint actions of these county banks and their show of support for the hospital.
Arndell said, “The bank presidents could not have been easier to work with or more cooperative. The banks really stepped up to the plate for this community.”