DASNY facilitates $318 million in tax-exempt equipment financings since 2020 as hospitals invest in recovery and technology upgrades
ALBANY, NY – Healthcare institutions across New York have accelerated equipment investments since the pandemic, with the Dormitory Authority of the State of New York (DASNY) facilitating tax-exempt lease transactions totaling $318 million since 2020 through its specialized Tax-Exempt Equipment Leasing Program (TELP). Many institutions are returning to TELP for repeat transactions, signaling continued investment in critical upgrades.
"The pandemic highlighted how essential modern equipment and technology systems are to healthcare delivery," said Robert J. Rodriguez, President of DASNY. "Our Tax-Exempt Equipment Leasing Program has become a vital resource for institutions investing in the infrastructure needed to serve patients more effectively while managing the financial pressures they continue to face."
Recent transactions demonstrate a shift toward technology-focused investments, with institutions increasingly financing electronic health records systems, advanced diagnostic equipment, and software infrastructure alongside traditional medical devices. This trend reflects the healthcare sector's digital transformation accelerated by pandemic-era telehealth adoption and data management needs.
DASNY's unique tri-party lease structure provides critical cost savings by making interest payments exempt from federal and state income taxes. The Authority serves as tax-exempt lessee between commercial lenders and not-for-profit and/or SUNY Hospital borrowers, creating financing terms that can significantly reduce costs compared to conventional loans.
Since the launch of TELP in 1995, the program has facilitated more than $3.6 billion in equipment financing for New York's healthcare and educational institutions and certain other not-for-profits. Program activity has grown since 2018, with the recent uptick reflecting institutional confidence in DASNY's financing capabilities during a critical modernization period.
Examples of healthcare and other not-for-profit organizations utilizing the program include SUNY Upstate Medical University, United Health Services Hospitals, Oswego Hospital, SUNY Stonybrook University Hospital, Brooklyn United Methodist Church Home, NYSARC Inc., NYU Langone Hospitals, and Episcopal Health Services. Several institutions have completed multiple TELP transactions, with SUNY Upstate Medical University and NYSARC Inc. among those returning for additional equipment financing as they expand modernization efforts.
Program enhancements in 2011 expanded eligible financing to include software, electronic medical records, and other intangible property – provisions now proving crucial as healthcare institutions prioritize digital infrastructure investments. The financing covers equipment ranging from MRI machines and laboratory systems to comprehensive IT platforms and cybersecurity upgrades.
The tax-exempt structure particularly benefits not-for-profit healthcare institutions facing margin pressure from increased labor costs, supply chain disruptions, and evolving patient care demands. TELP offers a compelling alternative to traditional capital expenditure financing.
Beyond healthcare, TELP also serves higher education and certain other not-for-profit institutions, as they upgrade technology infrastructure and research capabilities in response to changing educational and service delivery models.
About DASNY
Founded in 1944, DASNY is New York State's capital project development authority. It finances and constructs sustainable and resilient science, health and education institutions that help New York thrive. It is one of the largest issuers of tax-exempt bonds in the nation with an outstanding bond portfolio of approximately $60.1 billion as of March 31, 2025. DASNY is also a prolific public builder with a construction pipeline of approximately 1,000 projects valued at more than $13 billion as of March 31, 2025. To learn more about DASNY, visit www.dasny.org.