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Lehigh Valley Health Network Selling 8 locations, leasing back saves money

Lehigh Valley Health Network has announced a strategic financial move to bolster its community reinvestment efforts through a sale-leaseback transaction involving eight of its current locations.

“The primary goal of this transaction is to assist in raising funds that the health network can reinvest into the communities we serve,” LVHN said in a statement released Wednesday.

LVHN officials said the organization is working with Centurion Foundation on the transaction.

“Centurion is a charitable 501(c)(3) organization that helps other not-for-profit organizations achieve their purpose by developing, arranging financing for, and leasing facilities,” LVHN’s statement said.

Lehigh County’s Board of Commissioners in May approved a resolution for the issuance of debt service up to $160 million to facilitate the deal. The resolution calls for the Monroe County Hospital Authority to issue the bonds.

The deal, officials said, will not impact patients or staff at any of the locations involved. LVHN intends to lease back each location on a long-term basis, “ensuring the health network’s presence remains in the participating communities for years to come.”

“We are not discussing details about the transaction, but LVHN will have complete responsibility for the use and operation of the facilities,” the statement said. “We will continue to determine what services are utilized in each location as well as oversee the operations of each facility.”

The facilities involved in this transaction span four counties including Monroe, Lehigh, Northampton, and Luzerne.

The properties included in the sale and leaseback are 600 Commerce Blvd., Stroudsburg, and 179 Independence Road, East Stroudsburg in Monroe County; 2024 Lehigh St. and 1628-1650 W. Chew St., Allentown, and 1040 Chestnut St., Emmaus in Lehigh County; 26 Station Circle, Hazleton in Luzerne County; and 2300-2310 Highland Ave. and 2030 Highland Ave., both in Bethlehem Township in Northampton County.