Trumbull County commissioners hear public hearing on up to $942 million Mercy Health bond issuance; take matter under advisement

Trumbull County commissioners opened a public hearing on a proposed issuance of hospital facilities revenue bonds that would be issued by Allen County for the benefit of Bon Secours Mercy Health and would allow proceeds to be spent in Trumbull County.

Attorney Aubrey Searcy of Dinsmore and Scholl told the commissioners, “This is the County of Allen, Ohio Hospital Facilities revenue bonds series 2025 for Bon Secours Mercy Health,” and said the issuance would use a public hospital agency agreement under Chapter 140 of the Ohio Revised Code to permit a single issuer to provide tax-exempt financing for nonprofit hospitals with facilities across the state.

The public hearing is required by Internal Revenue Code section 142 to allow residents of affected political subdivisions to comment on projects financed with tax-exempt bonds, Searcy said. The commissioners must also give formal approval under section 147 of the Internal Revenue Code for bonds issued for the benefit of a nonprofit entity.

Charlotte Gardner, president of Mercy Health St. Joseph Warren Hospital, described local uses of proceeds that would affect Trumbull County, saying the system has “expanded and opened up a second ICU,” replaced a boiler system at Howland Medical Center to meet growing surgical demand and buys items such as a mammography machine and surgical video cameras. Gardner said those local purchases are part of a larger borrowing plan across Mercy Health’s Ohio facilities.

Blake Beechler, bond counsel to the county from the law firm of Kalfi, Halter, and Griswold, told the commissioners he had reviewed the documents and that “the county is under no obligation to pay any debt service on these bonds. That is an obligation solely that rests with Mercy.” He recommended opening the hearing for public comment; no members of the public spoke in opposition.

Aubrey Searcy said the bond issue would be in a par amount not to exceed $942,000,000 to be used across Mercy Health’s Ohio facilities and to refinance outstanding debt. She said Trumbull County joined the public hospital agency agreement in February and would be one of the political subdivisions in which proceeds may be spent.

With no public comment, a commissioner moved to take the resolution under advisement for a vote later in the day. That motion was seconded and approved by voice vote with Commissioners Malloy, Bernard and Hernandez recorded as voting yes.

The commissioners did not adopt the resolution at the hearing; they set the matter for a subsequent vote the same day. Commissioners expressed interest in further discussions about Mercy Health projects in the county, including a separate hospital project at Kent State that commissioners said they would discuss with Mercy representatives in March.

Details the commission reviewed included: the issuer (Allen County), the borrower/beneficiary (Bon Secours Mercy Health), a cap on the bond principal of $942,000,000, and the statutory bases for the hearing and approval (Chapter 140 of the Ohio Revised Code; Internal Revenue Code sections 142 and 147).