Westchester Medical Center Secures $195M In Bond Financing for New Patient Care Tower

By JOHN JORDAN – September 26, 2023

WHITE PLAINS—Westchester County’s Local Development Corporation (LDC)voted on Aug. 23 final approval of $195-million in tax-exempt bond financing for the development of a new 162,626-square-foot Patient Care Tower on the campus of Westchester Medical Center in Valhalla, NY.

The $221.3-million Patient Care Tower project will feature a five-story, 128-bed structure with all of its inpatient rooms ICU-equipped and a patient-centric design with leading edge amenities that WMCHealth officials stated will create a soothing, healing environment. It will house vital services for WMCHealth patients and their families including trauma, neurosciences, cardiology and general surgery. The ground floor will feaure conference space and the other four floors will each feature 32 beds.

A rendering of the new Patient Care Tower to be built on the campus of Westchester Medical Center. RENDERING COURTESY OF WMC HEALTH

“The LDC has a clear vision for the future of Westchester County, and we’re happy that vision includes projects such as the Patient Care Tower,” said Michael D. Israel, president and CEO of the Westchester Medical Center Health Network (WMCHealth).

He continued, “The Patient Care Tower on the Westchester Medical Center campus will be the Hudson Valley’s hub of critical care medicine as it will bring together critical care and medical-surgical specialties in one location, enabling Westchester Medical Center to convert to all private inpatient rooms across the rest of the campus. Additionally, the Patient Care Tower will advance our academic mission by giving medical residents and students a state-of-the-art facility in which to train.”

The LDC assists Westchester non-profits in securing tax-exempt bond financing benefits. These benefits are provided at no cost or risk to the taxpayers of Westchester. Since its inception in 2012, LDC has assisted not-for-profit organizations in securing tax-exempt bond financing totaling more than $500 million.

According to a cost benefit analysis prepared for the LDC, the project will provide Westchester County with total benefits of $3,531,780 over 30 years. The total benefits are comprised of $722,468 in sales tax revenue from construction; $2,528,062 of sales tax revenue from operations over 30 years, and $281,250 in fees to be collected by the LDC based on the bond proceeds.

The project is also estimated to create more than 770 construction jobs and 127 new full-time jobs.  WMC Health officials stated that site work has begun and that a groundbreaking will be held before year’s end. The project is expected to take two years to complete.

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