Board approves financing for medical helicopters in unique tax-exempt proposal

In a recent meeting of the Health and Educational Facilities Board in Nashville, board members discussed a unique financing proposal that diverges from their typical focus on bricks-and-mortar projects. The conversation centered around the inclusion of helicopters in a financing plan aimed at enhancing medical services.

The board's decision to consider financing aircraft was driven by the opportunity to utilize tax exemptions available for medical purposes. This innovative approach allows the board to take advantage of low interest rates, potentially securing financing below 3.5%. Such rates are significantly lower than traditional investment returns, making this a financially strategic move for the board as it continues to build its balance sheet following its separation from the university.

Cindy, a board member, elaborated on the criteria for financing equipment, noting that while the statute allows for a broad range of equipment financing, the board typically focuses on long-lasting assets like buildings and land. Shorter-lived assets, such as office furniture, are generally not financed due to IRS limitations on tax-exempt financing. However, the specialized nature and high costs of medical helicopters present a compelling case for this outlier financing approach.

As the board navigates these discussions, the implications of such innovative financing methods could pave the way for enhanced medical services in the Nashville area, showcasing a forward-thinking approach to healthcare infrastructure. The meeting underscored the board's commitment to exploring new avenues for funding that align with their mission to support health and educational facilities in the community.