The Idaho Health Facilities was established by the Idaho Legislature in 1972 as a source for eligible health care institutions to access the tax-exempt interest market. An eligible institution is defined rather broadly as any non-profit or public: hospital, clinic, nursing, home, or other health care facility, laboratory, laundry, administration building, research facility, maintenance, storage or utility facility, auditorium, dining hall, food service and preparation facility, mental and physical health care facility, dental care facility, nursing school, medical teaching facility, or other structures or facility, and all necessary, useful and related equipment, furnishings and appurtenances and including without limitation the acquisition, preparation and development of all lands, real and personal property, necessary or convenient as a site or sites for any of the foregoing; but shall not include such items as food, fuel, supplies or other items which are customarily considered as a current operation charge. Facilities shall not include any property used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.
Each project is examined from a financial perspective to determine the most appropriate means of financing the project, from both the Authority’s and facilities’ perspectives, at a level which is adequate to meet the project perspectives, at a level which is adequate to meet the project costs, and at a price that will not unnecessarily escalate health care costs. Typically, project financing is accomplished through the issuance of tax-exempt bonds or note by the Idaho Health Facilities Authority on behalf of a health care facility.
The process concludes with the implementation of the project and the creation and maintenance of proper safeguards which ensure the repayment of debt and are consistent with obligations to bondholders and the solvency of the facility.