WHCFA - Washington Health Care Facilities Authority

Notice of Public Hearing

NOTICE OF PUBLIC HEARING

FOR ISSUANCE OF TAX-EXEMPT SPECIAL FUND REVENUE BONDS BY

THE WASHINGTON HEALTH CARE FACILITIES AUTHORITY

The Washington Health Care Facilities Authority (the “Authority”) will hold a public hearing on September 19, 2025, at 9:00 a.m., using a toll-free telephone number at the date and time designated below, regarding the proposed issuance by the Authority of one or more series of tax-exempt Authority special fund revenue “qualified 501(c)(3) bonds,” as defined in Section 145 of the Internal Revenue Code of 1986, as amended (the “Code”), in an original aggregate stated principal amount not to exceed $785,850,000 (the “Bonds”).

The Authority has previously issued bonds for the benefit of CommonSpirit Health (“CSH”) (formerly known as Catholic Health Initiatives (“CHI”)), a Colorado nonprofit corporation, and certain of its affiliates located in the State of Washington:  (a) Franciscan Health System (“FHS” or “Franciscan Health System”), including the following operating divisions:  (1) St. Anthony Hospital (“St. Anthony”), (2) St. Francis Hospital (“St. Francis”), (3) St. Joseph Medical Center (“St. Joseph”) (4) and St. Clare Hospital (“St. Clare”), and (5) St. Anne Hospital (“St. Anne”) (formerly known as Highline Medical Center), (b) Enumclaw Regional Hospital Association, dba St. Elizabeth Hospital (“St. Elizabeth”), (c) Harrison Medical Center, dba St. Michael Medical Center (“St. Michael”), and (d) Franciscan Medical Group, dba CHI Franciscan Health (“Franciscan Medical Group”), each of which is a Washington nonprofit corporation.  Virginia Mason Medical Center (“Virginia Mason”), a Washington nonprofit corporation that, as of January 1, 2021, became an affiliate of CSH, previously issued its own Taxable Bonds, Series 2013, referred to below.  FHS, St. Elizabeth, St. Michael, Franciscan Medical Group and Virginia Mason are collectively referred to herein as the “Washington Affiliates.”  CSH and Dignity Health, a California nonprofit public benefit corporation, comprise a single, Catholic, nonprofit health system (the “System”).  All of such corporations are “501(c)(3) organizations” within the meaning of the Code.

The proceeds of the Bonds will be loaned to CSH and may be used to (a) finance, refinance, pay or reimburse the costs of the Projects described below, including capitalized interest; (b) refinance the Existing Debt described below, which financed, refinanced, paid or reimbursed costs of the Projects; (c) pay certain expenses incurred in connection with the issuance of the Bonds, and (d) fund a debt service reserve fund for all or any portion of the Bonds.

 The “Existing Debt” consists of all or a portion of the following:  (1) a taxable loan that refinanced the VIRGINIA MASON MEDICAL CENTER TAXABLE BONDS, SERIES 2013; (2) a taxable loan that refinanced the WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2013B-2 (Catholic Health Initiatives) (the “Series 2013B-2 Bonds”); (3) a taxable loan that refinanced the WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2019B-1 (CommonSpirit Health) (the “Series 2019B-1 Bonds”); (4) a taxable loan that refinanced the WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2019B-2 (CommonSpirit Health) (the “Series 2019B-2 Bonds”); and (5) the WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2019B-3 (the “Series 2019B-3 Bonds” and, together with the Series 2019B-1 Bonds and the Series 2019B-2 Bonds, the “Series 2019B Bonds”) or a taxable loan that will refinance the Series 2019B-3 Bonds.

 The Series 2013B-2 Bonds refinanced a portion of a taxable loan incurred to defease all of the WASHINGTON HEALTH CARE FACILITIES AUTHORITY FHA INSURED MORTGAGE REVENUE BONDS, SERIES 2008 (Highline Medical Center) in connection with the affiliation of Highline with FHS and CHI.

The Series 2019B Bonds refinanced a portion of (i) the WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2008A (Catholic Health Initiatives) comprising Series 2008A-4, 2008A-5 and 2008A-6; (ii) the WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2008D (Catholic Health Initiatives); (iii) WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2011A (Catholic Health Initiatives); (iv) the WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS, SERIES 2015A (Catholic Health Initiatives); and (v) certain taxable Commercial Paper issued by CHI to finance the costs of acquiring, constructing, remodeling, renovating and equipping certain projects for its Washington Affiliates.

Any one or more of CSH and/or the Washington Affiliates are or will be the initial legal owner and/or principal user of the projects to be financed and/or refinanced with the proceeds of the Bonds (collectively, the “Projects”).  All Projects are part of the System’s integrated operations.

The Projects consist of the acquisition, construction, renovation, installation and equipping of real property (including land, hospital and clinic buildings, parking garages, office buildings, clinics, warehouses and other buildings) and personal property (including equipment and fixtures) useful for or associated with delivery of inpatient and outpatient health care services or support for such care, which are located at the following campuses and other locations, and which will be financed or refinanced by the maximum stated principal amounts of Bond proceeds listed below:

  • Virginia Mason Medical Center: Up to $97,750,000 at the medical center and the related land, parking surfaces, clinics and other buildings located on the medical center campus, bordered generally by University Street to the north, Boren Avenue to the east, Spring Street to the South and Eighth Avenue to the west, and at various addresses, including, but not limited to: 925 Seneca Street and 1100 Ninth Avenue, Seattle, Washington 98101, all in Seattle, Washington.
  • Joseph Medical Center, dba Franciscan Health System St. Joseph Hospital: Up to $133,980,000 at  the medical center and the related land, parking surfaces, clinics and other buildings located (a) on the medical center campus, including, but not limited to the interior renovation of the existing 3-story building to support the medical clinics, bordered generally by S. 20th St. to the south, S. 15th St. to the north, S. Yakima Ave. to the east, and Martin Luther King Jr. Way to the west, at various addresses, including, but not limited to:  1617 S. J St., 1702 S. J St., 1717 S. J St., and 1812 S. J St., all in Tacoma, Washington; and (b) at Franciscan Medical Clinic – University Place located at 7210 – 40th Street W., University Place, Washington, and Franciscan Hospice House located at 2901 Bridgeport Way W., University Place, Washington, all part of an integrated operation.
  • Francis Hospital: Up to $67,640,000 at the hospital and the related land, parking surfaces, clinics and other buildings located (a) on the hospital campus, including, but not limited to a 24 bed expansion project and the relocation of a family birth center to a new location, each within the hospital facility, bordered generally by S. 348th St. to the south, 9th Ave. S. to the east, 1st Ave. S. to the west, and S. 344th St. (US Postal Building) to the north, at various addresses, including, but not limited to:  34503 9th Ave. S. and 34515 9th Ave. S., all in Federal Way, Washington; and (b) Franciscan Digestive Care Association located at 1112 – 6th Avenue, Tacoma, Washington, all part of an integrated operation.
  • Clare Hospital (Lakewood): Up to $26,860,000 at the hospital and the related land, parking surfaces, clinics and other buildings located on the hospital campus, bordered generally by 112th St. SW to the north, Bridgeport Way SW to the west, Kendrick St. SW to the east, and 115th St. Ct. SW to the south, at various addresses, including, but not limited to:  11315 Bridgeport Way SW (hospital), 11307 Bridgeport Way SW (Specialty Center), 11311 Bridgeport Way SW (St. Clare Medical Pavilion) and 4908 112th St. SW (St. Clare Hospital Resource Center), all in Lakewood, Washington.
  • Anthony Hospital: Up to $85,550,000 at the hospital and the related land, parking surfaces, clinics and other buildings located (a) on the hospital campus, bordered on the northwest side by Canterwood Blvd. NW and is bordered in all other directions by wetlands, at 11567 Canterwood Blvd. NW, Gig Harbor, Washington, and (b) at St Anthony Medical Building located at 4700 Point Fosdick Drive NW, Gig Harbor, Washington, all part of an integrated operation.
  • Elizabeth Hospital (formerly Enumclaw Regional Hospital), dba Franciscan St. Elizabeth Hospital: Up to $37,890,000 at the hospital and the related land, parking surfaces, clinics and other buildings located on the hospital campus, bordered generally by Adams Ave. to the south, Kibler Ave. to the north, Jensen St. to the east, and Cinkovich St. to the west, at 1455 Battersby Ave., Enumclaw, Washington.
  • Michael Medical Center – Silverdale (formerly Harrison Medical Center – Silverdale): Up to $211,930,000 at the medical center and the related land, parking surfaces, clinics and other buildings located (a) on the medical center campus, including, but not limited to a 74 bed acute care expansion to the Silverdale campus, bordered generally by Ridgetop Blvd. NW to the south, NW Myhre Rd. to the west, and Highway 303 – NE Waaga Way to the north and east, at various addresses, including, but not limited to:  1780 NW Myhre Rd. and 1800 NW Myhre Rd., Silverdale, Washington; and (b) at Harrison Port Orchard Urgent Care located at 450 South Kitsap Blvd., Port Orchard, Washington  and Harrison Belfair Urgent Care located at 21 Romance Hill Road, Belfair, Washington, all part of an integrated operation.
  • Anne Hospital (formerly Highline Medical Center): Up to $108,750,000 at the medical center and the related land, parking surfaces, clinics, energy plant and other buildings located on the medical center campus, including, but not limited to renovation of certain labor, delivery, recovery, postpartum suites within the Family Birthing Center, redesign of patient triage area of department, and related renovations, and infrastructure upgrades to critical facility equipment in the central plant, bordered generally by SW 160th St. to the north, 8th Ave. SW to the west, SW 164th St. and Sylvester Rd. SW to the south, and Sylvester Rd. SW to the east, at various addresses, including, but not limited to:  16251, 16255, 16259 and 16233 Sylvester Rd. SW and 16110 8th Ave. SW, all in Burien, Washington.
  • Franciscan Health System:

Up to $10,000 at the Franciscan Service Center located at 1149 Market St., Tacoma, Washington.

Up to $540,000 at the Franciscan Educational Support Center located at 2420 S. State St., Tacoma, Washington.

  • Franciscan Medical Group:

Up to $14,950,000 at Franciscan Medical Group – West Seattle, for improvements to a three-story building (including selective demolition and interior construction) and parking surfaces, bordered generally by SW Spokane St. to the south, 42nd Ave SW to the east, California Ave SW to the west, and SW Hinds to the north, at 3400 California Ave SW in Seattle Washington.

The System reserves the right to allocate and reallocate the proceeds of the Bonds to any of the locations set forth in this notice, notwithstanding the dollar amounts set forth herein.

A public hearing with respect to the proposed issuance of the Bonds will be held at 9:00 a.m. Pacific time on September 19, 2025, through the use of a telephone conference.   All interested persons are invited to listen to, and participate in, the public hearing by calling into the teleconference using the toll-free number 1-833-276-9446 and entering conference code 1212.  In order to facilitate registration of participants to the teleconference, it is requested that such persons call the above number no later than 8:55 a.m. (5 minutes before start time).  Written comments can be submitted to the Authority via email at shannong@whcfa.wa.gov no later than 8:30 a.m. Pacific time (30 minutes before start time) on the date of the public hearing.

Dated: September 12, 2025