Vanderbilt secures $70M for aircraft to enhance Life Flight operations

In a recent meeting of the Health and Educational Facilities Board in Nashville, key discussions revolved around the financial strategies for the Vanderbilt Life Flight program, which plays a crucial role in emergency medical transport across Middle Tennessee. The meeting featured insights from Aaron Yancey, who leads the financial reporting team, and Michael Wharton, a financial advisor from Kaufman Hall.

The board reviewed a significant financial proposal involving $194 million, primarily earmarked for the acquisition of nine helicopters and one fixed-wing aircraft. This investment aims to enhance the operational capabilities of the Vanderbilt Life Flight program, which has a commendable safety record, having transported 85,000 patients since 1984 without a single fatality or air accident.

Currently, the program operates under a contract with Air Methods, which is set to expire in April 2026. Vanderbilt University Medical Center plans to bring the program in-house, allowing for greater control over operations and finances. This transition includes a $70 million purchase of aircraft, which is expected to lower the overall cost of capital by refinancing existing tax-exempt debt of $124 million. This refinancing is projected to save approximately $340,000 annually in interest and taxes.

During the meeting, board members raised questions about managing the risks associated with variable interest rates in the financing plan. Yancey reassured the board that the financial strategy is designed to maintain a balanced mix of fixed and floating rates, aiming for an 80% fixed to 20% floating ratio. This approach allows the organization to benefit from lower rates while managing potential increases effectively.

As the board concluded its discussions, the focus remained on ensuring the sustainability and efficiency of the Vanderbilt Life Flight program, which is vital for the health and safety of the community it serves. The decisions made in this meeting will not only impact the financial landscape of the program but also the quality of emergency medical services available to residents across the region.