TELP Update

"Bassett Healthcare has used the DASNY TELP Program since 2000, completing six different TELP leases. This conduit financing vehicle gives Bassett the benefit of low-cost, tax-exempt rates that are usually 65% of comparable taxable rates. DASNY has streamlined the process and we usually are able to close in three to four months. We use this funding source for medical equipment and management information systems, both for hardware and software. There are many lenders anxious to provide TELP financing for hospitals. Whether youre a non-profit rural hospital or an academic medical center, the tax-exempt rates are clearly an advantage and TELP should be an important part of your annual capital plan."

Nicholas Nicoletta Corporate Vice President and Chief Financial OfficerMary Imogene Bassett Hospital Cooperstown, NY

Dormitory Authority can help small community hospitals acquire modern technology and equipment

Scan Much like large hospitals, small community and rural health care facilities need access to up-to-date, modern technology. The challenges of affording, acquiring and maintaining state-of-the-art medical equipment, computer information systems, energy efficiency or other “green” equipment can be difficult to overcome for some health care facilities, especially small ones.

The Dormitory Authority of the State of New York (DASNY) can help small non-profit hospitals acquire modern computer, clinical, medical imaging and other equipment through its Tax-Exempt Equipment Leasing Program (TELP). This public and private collaborative financing program can help health care facilities obtain the most current technology at cost-effective rates. The equipment lessors/lenders are not required to pay income tax on the interest received, so the lease interest rates are adjusted to reflect the tax-exempt savings. Typically, TELP customers have saved approximately $100,000 on each $1 million leased.

"Nathan Littauer Hospital and Nursing Home is a small community rural healthcare facility that takes full advantage of the Dormitory Authority's Tax-Exempt Equipment Leasing Program (TELP) to finance its computer and medical equipment technology needs.We often look to TELP to help us meet the demands placed on our budget to fund costly technology and equipment efficiently. Because our needs are not as substantial as large institutions, we needed to find a financing vehicle with reasonable fixed costs. The TELP program has saved us money on both the cost of issuance and interest rate. I can attest that the TELP program works well for us."

Henry Legendziewicz Senior Vice President and Chief Financial Officer Nathan Littauer Hospital Gloversville, NY

scan2 To date, more than 300 projects have been financed through the Dormitory Authority's TELP Program for health care and higher education facilities totaling more than $1.5 billion. For calendar year 2007, the average transaction size for a health care lease was about $3.9 million with interest rates in the area of 4 percent. To see how much your hospital may be able to save using our TELP program, go to our website and use the TELP Savings Calculator at www.dasny.org/telp.

Since the TELP program began, the following rural and community-based health care systems, hospitals and nursing homes have financed equipment through this program:

■ Bassett Healthcare

■ Benedictine Hospital

■ Canton-Potsdam Hospital

■ Hepburn Medical Center and United Health Services Hospital

■ Nathan Littauer Hospital and Nursing Home

■ Niagara Falls Memorial Hospital

■ United Helpers Nursing Homes

For more information on how DASNY can meet your equipment financing needs, contact Mr. Art Ware, Senior Analyst for TELP Programs, at 518-257-3373, or by e-mail to Arthur Ware. For additional information on DASNY and its TELP program visit our website at www.dasny.org/telp.

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