Butler Health System to add $21M facility, has maintained consistent financial upswing

Butler Health System's yearly debt payments will remain steady despite construction of an office building and a debt refinancing plan, the system's chief financial officer said.

The $21 million building is scheduled to open in November, containing offices for physicians along with cardiology, gynecology, oncology, palliative care, orthopedics, pain management and other programs, said Anne Krebs, chief financial officer of Butler Health.

The three-story building will house 20 to 25 physicians and physician assistants or nurse practitioners and 50 and 60 support staff and free space in the main hospital in Butler.

We've been experiencing growth in physician practices, and we don't have the space to accommodate them, Krebs said. Construction of the building at routes 422, 38, and 68 in Summit began in December.

The health system chose the site, spokeswoman Connie Downs said, because the adjacent East Campus is the busiest in the system. The new building will establish an outpatient facility about a quarter-mile from the hospital.

The health system is expected to issue $91.2 million in bonds this week.

Proceeds from the sale of the tax-exempt bonds will repay most of more than $100 million the health system financed through the Butler County Hospital Authority to repay a 2009 expansion project, but at a lower interest rate.

Krebs said the precise interest rate wouldn't be known until this week.

We assume it's going to be fairly robust savings to justify the process, Krebs said.

The hospital has about $132 million in long-term debt, according to Moody's Investors Service. With the new financing, it'll add about $20 million to that debt. However, Krebs said, with lower interest rates, the health system expects its annual debt payments will remain at about $9.7 million.

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Butler Health System to add $21M facility, has maintained consistent financial upswing