Henrico County Economic Development Authority approves $30M bonds for Bon Secours Mercy Health

On January 21, 2025, the Portsmouth Economic Development Authority (EDA) convened to discuss a significant bond issuance for Bon Secours Mercy Health, a nonprofit healthcare system operating in the region. The meeting, which included a public hearing, focused on the approval of approximately $30 million in revenue bonds intended to finance various capital projects at Maryview Hospital, a key healthcare facility in Portsmouth.

Erin Sutton, representing the bond counsel Dinsmore and Scholl, outlined the purpose of the bond issuance. The funds will be utilized to refund existing debt, reimburse prior capital expenditures, and support future capital projects. This financial maneuver is crucial for maintaining and upgrading healthcare services in the area, particularly as the region faces increasing demands for medical facilities and services.

The bond issuance is structured as conduit revenue bonds, meaning that the debt service will be secured solely by the revenues generated by Bon Secours Mercy Health, without imposing any financial obligation on the city of Portsmouth or the EDA. This structure is designed to ensure that local taxpayers are not burdened by the debt.

Sutton detailed several specific projects that the funds will support, including the relocation and renovation of various medical suites, upgrades to nursing call systems, and the purchase of advanced clinical equipment. These improvements aim to enhance the hospital's capabilities and ensure that it meets current technology standards. Notably, the upgrades also include significant renovations to the emergency room and other critical areas of the hospital.

During the public hearing, community member Donna Dave expressed concerns about communication regarding the bond issuance and the need for more public engagement in such discussions. Her comments highlighted a desire for transparency and dialogue between the EDA and the community, emphasizing the importance of keeping residents informed about significant developments that affect local healthcare services.

Following the public comments, the EDA members voted unanimously to approve the resolution for the bond issuance, signaling strong support for the initiative. This decision marks a pivotal step in enhancing healthcare infrastructure in Portsmouth, with the potential to improve service delivery and patient care in the region.

As the EDA moves forward, the focus will be on ensuring that the planned projects are executed effectively and that community concerns are addressed. The approval of these bonds not only reflects a commitment to healthcare improvement but also underscores the importance of collaboration between local government and healthcare providers in meeting the needs of Portsmouth residents.