Expansion of Clinical Service in Western Washington Funded by Tax-Exempt Bonds
In 2020, a $232.9 million tax exempt bond issue helped pay for the equipping and expansion of Seattle Cancer Care Alliance’s South Lake Union Clinic (the “SLU Clinic”) in Seattle, Washington. Increased patient volumes and the evolution of cancer therapies have led to an increasing demand for targeted therapy and interventional imaging services as well as early phase clinical trials. The new outpatient facility located at 820 Yale Avenue North is connected to the existing SLU Clinic by an enclosed pedestrian connection. In order to provide additional capacity and enable future growth, the facility includes: over 100 new parking stalls, 60+ flex rooms, specimen collection, infusion, interventional radiology, ultrasound, MRI, CT and PET scans as well as other services.
In addition to helping pay for the construction and equipping of the new outpatient facility, tax exempt bond proceeds were also used to reimburse Seattle Cancer Care Alliance for prior capitalized expenditures, restructure their outstanding Washington Health Care Facilities Authority Series 2010 Variable Rate Revenue Bonds, and to pay for costs of issuance.
The Seattle Cancer Care Alliance (“SCCA”) was formed in June 1998 by Fred Hutchinson Cancer Research Center, the University of Washington and Seattle Children’s Healthcare System for the purpose of developing and offering a comprehensive program of integrated cancer care services. SCCA offer a variety of treatment options for malignant and non-malignant oncology diseases to both adult and pediatric patients. The services include, but are not limited to, medical oncology, genetic sequencing, medical imaging, and a variety of other services.
By issuing tax exempt bonds through the Washington Health Care Facilities Authority to finance this project, SCCA will reduce its interest expense over the life of the loan by approximately $39,507,311. The estimated financial benefits resulting from financing this project through the Authority, as opposed to obtaining financing other than through the Authority, is used for building, providing and utilization of modern, well equipped and reasonably priced health care facilities in a manner that minimizes the capital costs of construction, financing and use thereof and thereby the costs to the public of the use of such facilities, and contributes to improving the quality of health care.
Donna Murr, Executive Director
Washington Health Care Facilities Authority