West Virginia Code of State Rules Agency 116 - Hospital Finance Authority
West Virginia Code of State Rules
Agency 116 — Hospital Finance Authority
Overview
The Hospital Finance Authority (HFA) is an agency responsible for assisting hospitals and healthcare facilities in West Virginia in securing financing for construction, renovation, and expansion projects. The Authority facilitates the issuance of bonds and other financial instruments to provide capital funding to eligible healthcare entities.
Key Components of Agency 116
1. Purpose and Powers
The HFA is created to enable hospitals and healthcare providers to access funds for capital projects.
It issues bonds and other obligations to raise capital.
The Authority operates to support the healthcare infrastructure development in the state.
2. Organizational Structure
The Authority is governed by a Board of Directors.
Board members are appointed according to the procedures outlined within the agency’s rules.
The Board oversees the operations, policies, and financial decisions of the Authority.
3. Eligibility and Application Process
Hospitals, healthcare facilities, and related organizations may apply to the Authority for financing assistance.
Applicants must submit detailed project proposals, financial information, and other documentation as required.
The Authority reviews applications to determine eligibility based on established criteria such as financial viability and project necessity.
4. Issuance of Bonds and Financing Instruments
The Authority issues revenue bonds or other debt instruments on behalf of eligible healthcare entities.
Bonds are issued under terms approved by the Authority’s Board.
The proceeds from bond sales are used exclusively for approved healthcare capital projects.
5. Financial Management and Oversight
The Authority monitors the financial status of bonds issued.
It ensures compliance with bond covenants and repayment schedules.
Annual audits or financial reports may be required from entities receiving financing.
6. Fee Structure
The Authority establishes fees for application processing, bond issuance, and other services.
Fees are designed to cover administrative costs and maintain the Authority’s financial stability.
7. Rules and Procedures
The Authority adopts and enforces rules governing application review, bond issuance, and financial management.
Procedures are in place for handling defaults, refinancing, or restructuring of debt.
The Authority maintains transparency and accountability through record-keeping and reporting requirements.
Summary Table of Agency 116
| Section | Description |
|---|---|
| Purpose & Powers | Facilitate financing for hospital capital projects |
| Organizational Structure | Board governance and appointment |
| Eligibility & Application | Criteria and process for financing applications |
| Issuance of Bonds | Terms and procedures for issuing revenue bonds |
| Financial Management | Monitoring bond compliance and financial reporting |
| Fee Structure | Fees for services related to financing |
| Rules & Procedures | Administrative rules for operations and financial oversight |
Illustrative Internal Example (Hypothetical Scenario)
Scenario: A hospital submits an application to the Authority for financing the construction of a new wing.
The Authority reviews the application, examining the hospital’s financial statements and project plans.
The Board approves the issuance of revenue bonds to fund the project.
Bonds are issued, and the hospital receives funds for construction.
The Authority monitors bond repayments and requires periodic financial reporting from the hospital to ensure compliance.
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