Nassau OKs bonds for Catholic med services

A bid by Catholic health care institutions to refinance debt moved forward Thursday when Nassau County agreed preliminarily to issue up to $200 million in tax-exempt bonds.

The board of directors of the county's Local Economic Assistance Corp. unanimously approved a resolution for the financing, which is expected to total $160 million.

The move came a month after the Suffolk County Economic Development Corp. gave preliminary approval for $290 million in tax-exempt bonds for Catholic Health Services of Long Island.

With about $450 million in financing, the network of six hospitals, three nursing homes and other medical operations will have more flexibility in paying bills and improving buildings and services, said David DeCerbo, senior vice president and general counsel for CHS. "Our debt right now is very front-loaded, and it will be a benefit to have our bond payments spread out," he told directors of the Nassau corporation. "We will be able to maintain services at the highest level."

Based in Rockville Centre, CHS operates Mercy Medical Center, also in Rockville Centre, St. Francis Hospital in Roslyn, St. Joseph Hospital in Bethpage and the DeMatteis Center for Cardiac Research and Education in Greenvale.

The Suffolk facilities are Good Samaritan Hospital Medical Center in West Islip, St. Catherine of Siena Medical Center and Nursing Home in Smithtown, St. Charles Hospital in Port Jefferson, Good Samaritan Nursing Home in Sayville, Our Lady of Consolation Nursing & Rehabilitative Care Center in West Islip and Maryhaven Center of Hope in Port Jefferson. Islandwide hospice and home-care services are based in Melville.

DeCerbo noted these facilities will serve as collateral for the bonds.

CHS has a workforce of about 18,000 people, making it one of the region's largest employers. Its yearly payroll totals $938 million with salaries averaging $52,095 per worker, according to Suffolk documents.

DeCerbo said, "These bonds will reduce the level of our debt service and allow us to meet the challenges we have."