El Camino Hospital
Providing leasing for new imaging equipment
El Camino Hospital was constructing a new building where they planned to move all of their patient care to. The current hospital building did not meet California seismic standards. Bond financing was used to fund the construction of the new building. After the bond issue, hospital leadership decided they wanted all new imaging equipment for the new hospital. However, going back to the bond market was not an option. The customer needed an alternative source of financing in order to acquire the new equipment.
As the customer was accustomed to issuing tax-exempt bonds to finance major capital expenditures, Siemens Financial Services presented a tax-exempt lease solultion to the hospital for the new equipment.
The tax-exempt lease provided the hospital with financing at a rate of interest that is similar to what they would experience via a tax-exempt bond issue.