Board approves conduit financing resolution for Tamarack Health; hospital projects staffing growth
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Summary
The Ashland County Board of Supervisors approved a resolution authorizing a conduit financing issuance for Tamarack Health with county staff and the hospital describing the financing as staged to comply with IRS limits.
The Ashland County Board of Supervisors approved a resolution authorizing a conduit borrowing issuance for Tamarack Health, with county officials and the hospital's finance officer describing the financing as structured to comply with Internal Revenue Service rules that limit certain conduit issuances per year.
A county supervisor explained that Tamarack prefers to complete a portion of the issuance this year and return early next year to request the remaining authorization so the issuance does not exceed the IRS annual limit of $10 million for this type of issuance. The board approved the resolution and a supervisor told the meeting it "will see this again early next year in the amount of $2,000,000." The chair and finance staff said there is no risk to Ashland County under the conduit structure.
Kent Amanzo, chief financial officer at the hospital, told supervisors the new addition has seven physicians signed and two or three additional offers outstanding; he estimated supporting staff would likely multiply providers by three to four and said the project could create a minimum of 25—30 staff positions and anticipated growth in provider staffing to roughly 15 providers as the facility expands. Amanzo said the facility includes shell space on a second floor to accommodate anticipated growth and that the hospital's behavioral-health outpatient unit will remain in place.
Supervisors asked whether the project would expand inpatient mental-health capacity. Hospital representatives said the hospital is a critical-access hospital and noted the Centers for Medicare & Medicaid Services (CMS) caps critical-access inpatient beds at 10; the Tamarack project does not plan to expand that cap.
Finance committee had unanimously recommended the resolution. The motion to approve the resolution was made by Supervisor Gary and seconded by Supervisor George; the board adopted the resolution by voice vote.
The board and hospital representatives said the project will return to the board next year for an additional issuance request that Tamarack's finance team intends to present in early 2026.
