COLUMBUS and ZANESVILLE, Ohio, May 12 Huntington Bank (Nasdaq: HBAN; www.huntington.com) has created a unique funding model to finance a $25 million electronic medical records (EMR) system installation at one of the region's largest health care providers, Zanesville-based Genesis HealthCare System. The $25 million equipment finance deal will install a clinical information system enabling Genesis to establish an EMR across its two hospitals and multiple health providers serving Southeast Ohio patients.
Genesis successfully overcame the tight national credit market for health care infrastructure with a strong track record of wise financial planning that created an attractive investment opportunity, explained Jim Dunlap, Huntington's senior executive vice president and commercial banking director. Coupled with federal stimulus money, Genesis will invest more than $40 million in its systemwide EMR integration.
"Huntington has been working with Genesis for years," Dunlap said. "When it came time for the health care system to find a financing partner, we presented an innovative solution that enables Genesis to meet an aggressive implementation timeline while eliminating market interest rate fluctuations on the debt."
The financing, which is authorized by a pass-through, tax-exempt relationship with Muskingum County, will be issued in $15 million and $10 million phases.
"This financing structure creates a winning model for Genesis," Dunlap said. "We have been able to eliminate floating interest rates to create stability for cash management planning during this immense project, so that Genesis can focus on implementation without adding risk."
Genesis is scheduled to debut its initial EMR system enhancements in November 2010 through a pilot at four physician offices and expand the project rollout in 2011," said Genesis Chief Financial Officer Paul Masterson.
"Genesis' ability to take on a full EMR system upgrade that takes advantage of the stimulus funding pool is the result of careful preparation and a strong reserve to ensure our continued excellence in service to our community," Masterson said. "We found the right match with Huntington to minimize risk exposure and maximize control over variables to support our success."
Huntington Bancshares Incorporated is a $52 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has been providing a full range of financial services including checking, loans, savings, insurance and investment services to customers for 144 years. Huntington has more than 600 banking offices. Huntington also offers retail and commercial financial services online at huntington.com; through its telephone bank; and through its network of over 1,300 ATMs.
SOURCE Huntington Bancshares Incorporated