Press Release


For More Information Contact the NJHCFFA
Communications Department:
609-292-8585 X142
For Release: December 20, 2006

CONTACT: Stephanie Bilovsky
PHONE: 609-292-8585
Date: December 19, 2006




(Trenton)  Today, the New Jersey Health Care Facilities Financing Authority (the "Authority") closed almost a quarter billion dollar financing on behalf of Saint Barnabas Health Care System. The transaction's main objective is to reduce the maximum annual debt service that ultimately affects the System's coverage ratio. This is accomplished through refinancing and extending final maturities.   Therefore, the proceeds will provide approximately $100 million to refinance portions of the System's indebtedness. 


Proceeds will also be used to provide approximately $100 million for construction and renovation projects at three hospital locations within the system, consisting of:

  • (at Clara Maass Medical Center) constructing a parking garage and renovating a surgical unit to create 13 private post partum rooms and ancillary;
  • (at Community Medical Center) creating 74 private patient rooms, constructing a parking garage and a comprehensive cancer center, and providing endoscopy capabilities to Surgical Operating Rooms; and,
  • (at Newark Beth Israel Medical Center) renovating areas for the surgical department, expanding the NICU nursing station and relocating its respiratory lab, adding five bays to the Fast Track Unit, expanding the Cohen Cancer, and structurally repairing three parking garages.

Many of these projects are either completed or are underway, therefore, some proceeds will reimburse costs already incurred. 


Saint Barnabas, New Jersey's largest integrated health care system, includes Clara Maass Medical Center, Community Medical Center, Kimball Medical Center, Monmouth Medical Center, Newark Beth Israel Medical Center, Saint Barnabas Medical Center, and Union Hospital, as well as outpatient centers, a gynecological surgery center, nursing/rehabilitation centers and assisted living facilities, ambulatory care facilities, geriatric centers, a psychiatric facility, a behavioral health network, and home care and hospice programs.


The Authority is the primary issuer of municipal bonds for New Jersey's health care organizations. Created in 1972 by an act of the Legislature to provide not-for-profit health care providers with access to low-cost capital, the Authority's statutory powers were expanded in 1998 to include financing for all health care organizations or components thereof. During its 30+-year history, the Authority has issued over $12 billion in bonds on behalf of over 140 health care organizations throughout the state.