Washington Administrative Code Title 247 - Health Care Facilities Authority
Overview
WAC Title 247 governs the rules and regulations related to the Washington State Health Care Facilities Authority (HCA Authority). This authority is a state agency created to facilitate the financing of health care facilities and related projects in Washington.
The purpose of the Health Care Facilities Authority is to help hospitals, nursing homes, clinics, and other health care providers secure funding for capital projects through the issuance of tax-exempt revenue bonds and other financial mechanisms.
Purpose and Mission of the Health Care Facilities Authority
Support the health care infrastructure by providing access to affordable financing.
Promote the construction, renovation, and modernization of health care facilities.
Help eligible entities obtain tax-exempt bonds, which often carry lower interest rates than traditional financing.
Facilitate projects that improve public health services and enhance community health care access.
Key Elements of WAC Title 247
1. Authority and Powers
The Authority has the power to issue bonds and other obligations to finance health care projects.
Bonds issued by the Authority are generally exempt from state and federal taxes, making them attractive to investors.
The Authority can enter into agreements with health care providers and other entities to manage financing arrangements.
It has the ability to pledge revenues from bond repayments and enforce contracts.
2. Eligibility and Application
Entities eligible to receive financing through the Authority include:
Hospitals
Nursing homes
Clinics
Other health care providers, including nonprofit organizations
The process for applying for financing or bond issuance is outlined, including documentation requirements and compliance with state laws.
Applicants must demonstrate that projects meet certain criteria, such as community benefit or improving health care access.
3. Bond Issuance Process
The Authority follows a structured process for approving bond issuance:
Review and approval of financing applications.
Public notice and hearing requirements to ensure transparency.
Compliance with legal and financial regulations.
The Authority coordinates with bond counsel, financial advisors, and underwriters.
4. Financial and Reporting Requirements
Entities that receive financing must comply with reporting requirements on the use of funds.
The Authority monitors the financial health of projects financed by bonds to protect investors and ensure compliance.
Annual reports and audits may be required.
5. Limitations and Restrictions
The Authority cannot directly provide grants or subsidies but acts as a financing facilitator.
Bonds are repaid from the revenues or resources of the borrower; the state does not guarantee repayment.
Projects financed must comply with applicable health care laws and regulations.
6. Governance
The Health Care Facilities Authority is governed by a board or commission appointed by the Governor or other designated officials.
The board oversees policies, approves financing transactions, and ensures the Authority’s operations align with its mission.
Significance of WAC Title 247
Enables health care providers, especially nonprofit and public entities, to access lower-cost capital for important facility improvements.
Supports the growth and modernization of health care infrastructure in Washington State.
Indirectly contributes to improving health care services and accessibility for residents by facilitating necessary investments.
Helps maintain the financial viability of health care institutions.
Summary
WAC Title 247 establishes the framework for the operation of the Washington State Health Care Facilities Authority, which provides critical financial tools—mainly through tax-exempt bond issuance—to assist health care providers in funding capital projects. This ultimately supports improved health care infrastructure and services across the state.
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