California Health Care District Financing Techniques

Public Finance Alert
July.27.2016

Across the nation, the delivery of health care services is undergoing a period of transformation. Much of this change is being driven by The Affordable Care Act signed into law in 2010.

Many hospital facilities in California are aging and need to be renovated or replaced in order to address the evolving regulatory and insurance environment, seismic upgrades for acute care facilities required under California law or other needs in the community. Health care districts in California are authorized to incur various types of debt, including general obligation bonds that are paid from ad valorem property taxes levied on property within the district, as well as debt secured by district revenues. The issuance of bonds or incurrence of other debt by health care districts involves the interplay of a number of laws, including California statutes, the California Constitution, federal securities laws and federal tax laws.

Authors

Jenna Magan Partner, Public Finance

Sacramento

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D:+1 916 329 7980
E: [email protected]

Practice:

Finance Sector
Public Finance

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Jenna Magan Partner

Sacramento

Jenna has worked on all structures available in public finance, including fixed and variable, tax-exempt and taxable, insured, letter of credit and liquidity supported bonds, conversions, tenders, exchanges, restructurings and reofferings, senior/subordinate, capital appreciation and convertible capital appreciation bonds, securitizations, project finance, direct purchases, bank-qualified transactions and 144A and Section 4a2 offerings.

Jenna's practice focuses on the following areas, in which she has acted as bond, borrower’s, disclosure, underwriter's, and bank/direct purchaser’s counsel:

Healthcare, Senior Living and Other 501(c)(3) Financings
Local Government Lease, Enterprise (Water, Wastewater, Airport, Solid Waste), Pension Obligation and Short-Term Financings
State of California Bond Financings
Project Financings
Tobacco Securitization Financings
Post-Issuance Compliance

Donald Field Partner, Public Finance

Orange County; Los Angeles

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D:+1 949 852 7727
E: [email protected]

Practice:

Finance Sector
Public Finance

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Donald Field Partner

Orange County; Los Angeles

He is also a member of Orrick's Leasing Practice Group, Assessment/Mello-Roos Practice Group, and Revenue Practice Group. Don has extensive experience, as bond counsel, disclosure counsel and underwriter's counsel, in the financing techniques used by school and community college districts, cities and counties in California. His practice focuses on local governmental infrastructure financing, including general obligation bond financing, municipal lease financing, and land-secured financing, as well as tax and revenue anticipation note (TRAN), pension obligation and other post-employment benefit (OPEB) obligation financings. Don serves as the lead lawyer for the California School Boards Association's annual tax and revenue anticipation note pool.