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Petaluma Health Center Get Loan From United Health Group (Capital Access) Who Purchased Their Tax Exempt Bonds

Posted Jul 07 2010 5:33pm

Health insurers are now lenders for small financing for capital between $1 and $5 million for smaller healthcare groups or hospitals.  If you do a search you can find image other healthcare facilities where United has extended loans.  United pays the cost of the loans with their own internal “grant” program that goes along with the load to cover the costs. 

From the website: 

“The Capital Access Small Issuance Program offers tax-exempt bond financing at interest rates often lower than those of conventional loans, maturity and term structure design flexibility, and a dedicated team of underwriters and program investment professionals that help streamline the overall financing process. Issuance costs are subsidized by UnitedHealth Group and PacifiCare of California through the current Grant Program.”

This is one huge company involved in more than just health insurance premiums and have a lot of financial ties all over the place either directly or through their subsidiaries. 

Their subsidiary bought a Chinese Gateway company that will help facilitate selling more Chinese drugs/devices here in the US and in other places in the world?  Is this one way the insurer is looking to keep costs for healthcare down in the US?  Remember all these subsidiaries of big companies exchange data and work together today and as such how does the intelligence data they collect I ask sometimes. 

UnitedHealth subsidiary (Ingenix Subsidiary I3) Acquires ChinaGate – Working to Sell Chinese Products Globally

It’s all about the money and investing so the money by all means is a good deal but what happens if payments are not made or get behind?  It is kind of a double edge sword here in a way as the financial folks will want the money.

Also posted today at the link above is a post about larger hospitals and their problems with investors, bonds and Wall Street so remember UnitedHealth Group is openly traded on the stock exchange and the first area of responsibility by law is dividends.  You can read more about that side of the story at the link below on how they are paying out higher dividends as announced in May of 2010.  BD 

As a side note, it is interesting how the name has changed from UnitedHealthcare to UnitedHealth Group fairly recently.  BD

Petaluma Health Center, a Federally Qualified Health Center that offers primary care and mental health services, received $5.87 million in capital lending to help the organization deliver quality primary health care services to residents in southern Sonoma County. 

UnitedHealth Group purchased Petaluma Health Center's tax-exempt revenue bonds through the California Health Care Investment Program, which gives California health care entities access to capital at rates that are highly competitive with those of conventional financing. Additionally, given the dollar size of the bond issue, Petaluma Health Center also qualified for a cost of issuance subsidy of about $620,000, which covered nearly the entire amount of the organization's bond issuance costs. The cost of issuance was subsidized by UnitedHealth Group's Capital Access Small Issuance Program.

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