Tarrant County approves $1 billion bond to benefit Baylor Scott & White Health
Tarrant County commissioners voted Tuesday to approve issuing more than $1 billion in tax-exempt bonds to benefit Baylor Scott & White Health, the state’s largest nonprofit health system.
The issuer of the $1,070,000,000 bond is the Tarrant County Cultural Education Facilities Finance Corp., a subsidiary of the county. Commissioners voted on the bonds as part of a consent agenda without discussion.
“Baylor Scott & White is planning to issue bonds that may be used for expansion and modernization projects, routine maintenance and replacement across the health system, as well as to refinance certain prior bonds,” said spokesperson Matthew Olivolo. He did not answer more detailed questions about what the bonds will be used for.
These are sometimes known as conduit bonds, meaning they are bonds issued by the county but benefitting a private entity. These differ from traditional bonds in that the county is not responsible for repaying the debt.
“The obligation for repayment of the debt rests with the private party benefiting from the proceeds of such debt,” according to the county’s Annual Comprehensive Financial Report. “Neither the County nor the Corporations are obligated in any manner for repayment of the debt.”
The health system operates 52 hospitals in Texas, including three flagship hospitals in Fort Worth, Dallas and Temple. The system had a net income of $1.7 billion in the fiscal year ending June 30, according to its annual disclosure report.
