CAMDEN, N.J., Sept. 8 /PRNewswire/ -- Cooper University Hospital has announced the issuance of $80 Million in tax-exempt bonds, its largest deal ever. Planning for this financing involved 22 different organizations and close to 50 professionals. The transaction was culminated with a mixture of $30 million of fixed-rate bonds, $40 million of variable rates bonds, and a $10 million capital equipment lease. Major investors included Eaton Vance, Dreyfus, Merrill Lynch, GE Capital, Evergreen, USAA and others.
“This is a tremendous milestone for Cooper University Hospital,” states Dennis Roemer, Chief Financial Officer at Cooper. “During the past month, demand for our new debt was simply outstanding. It was over-subscribed, and the pricing on our older issue -- the 1997 Bonds, increased approximately 10% in the 30 days leading up to this new issue. The market has clearly gained confidence in us. Cooper’s recent increase in both the Moody’s and the S & P bond ratings have communicated to financial markets that Cooper is a stable financial institution, one that is well positioned to continue making further improvements.”
Significant efforts in basic financial management plus operational enhancements the past three years has brought the institution improved financial strength. “Furthermore,” states Roemer, “we have capitalized on this momentum by making smart, calculated investments in core strategic services.” This $80 million of financing will be a vital source for funding Cooper’s previously announced $117 million expansion plan. Another major source of financing will be its own hard-earned equity.
“We have seen vast improvements in our financial standing due to a restructuring of leadership and refocusing the company on business practices that are typical of successful firms in the private sector,” states Charles E. Sessa, Jr., Chairman of Cooper’s Board of Trustees. “Cooper and South Jersey will also benefit from New Jersey’s investment in the Camden Revitalization and Economic Recovery Initiative -- an historic measure that is transforming the City of Camden -- and the continued commitment of the State to meet its responsibility to adequately fund charity care services provided by safety-net hospitals. The success of these two measures is due to the leadership of Majority Leader Roberts, Senator Wayne Bryant and Assemblyman Lou Greenwald. These legislative leaders were also instrumental in increasing funding for medical education in South Jersey, which has historically lagged far behind other regions in New Jersey,” commented Sessa.
Several years ago, Cooper began the transition to solid financial standing by focusing on a strategy that emphasized clinical leadership, service excellence and revenue enhancement initiatives at all levels. Since 2001, Cooper has been able to expand its services to meet the growing needs of the region by adding Centers of Excellence. Recruitment of world-renowned physicians created the Cooper Heart Institute, Cooper Bone & Joint Institute, Cooper Critical Care which introduced the COTS patient transfer program, The Cancer Institute of New Jersey at Cooper and the already solid Cooper Trauma Service, the only Level One Trauma Center in South Jersey.
“Our Centers of Excellence have brought tremendous growth to Cooper and provide the highest quality of services to the region,” states Christopher T. Olivia, MD, President and Chief Executive Officer at Cooper. “Our physicians have brought their expertise here to South Jersey so patients do not have to travel over the bridge for the best care possible for all their healthcare concerns.”
Cooper has instituted many new reporting protocols over the past several years. “Financial and operational indicators are constantly monitored. Department heads, senior management, Board members, even our investors, get better information on a regular basis than ever before, and this measurement process breeds a culture of accountability and responsibility to continue our momentum,” states Roemer. We have a strong team, we have solid tools, and our investors have now seen that we are a viable corporation with a bright future.”
The Cooper Health System and its flagship Cooper University Hospital is the premier provider of comprehensive health services and advanced medical technology in southern New Jersey. As a clinical and core teaching campus for the University of Medicine and Dentistry of New Jersey/Robert Wood Johnson Medical School-Camden, Cooper has become a national leader in medical education and research. For patients, that means the widest array of clinical services in southern New Jersey with a full continuum of primary and tertiary care, innovative diagnosis and treatment options with access to cutting-edge research and protocols.
Cooper University Hospital
CONTACT: Peggy Leone, Assistance Vice President of Public Relations,Cooper University Hospital, +1-856-342-3332
