WILKES-BARRE, LUZERNE CO. (WOLF) — Wilkes-Barre city council voted 5 to 1 in favor of approving $180M in tax-exempt bonds for WoodBridge Health.
WoodBridge Health is planning to purchase Wilkes-Barre General Hospital, Regional Hospital in Scranton, and Moses Taylor Hospital in Scranton.
The non-profit is a startup that has existed for less than a year, and this worried members of the public who spoke at the meeting.
“That’s a lot of money for a startup. According to a Times Leader article, they just formed this year, and it just reeks. I just have the feeling things aren’t gonna go they way they should,” one opposing member of the public said.
Others worried the non-profit would fall short on promises or take the money and run.
“How do I know this company isn’t going to come in and pay their executives a large fee after they get this bond?” said another member of the public in opposition.
“There’s no guarantee they provide more services. Are they obligated to do what they say they do once they get this bond? Maybe they get this bond and they cut even more services,” he continued.
The startup is too new to require a payment in lieu of taxes, or PILOT, something that worried Vice-chair Tony Brooks, the only opposing councilmember.
“In my mind, it didn’t pass what’s called the Hospital Utilization Test. These are standards that hospitals must meet for non-profit exemption. One of the things is it relieves the government of some burden. PILOT is a relieving of some burden,” said Brooks.
WoodBridge Health’s president Don Steigman says the bonds will allow the startup to restore previous services removed from the hospitals, and create job opportunities.
“As we continue to grow back services, there will be additional jobs brought into the marketplace as well,” said Steigman.
Wilkes-Barre Mayor George Brown says city of Wilkes-Barre would not be responsible for these bonds, and WoodBridge is expected to repay the bonds.
“The $180 Million Bond we are not responsible as a city, we are a passthrough. There is no obligation by the city of Wilkes-Barre in any way to pay this bond,” said Mayor Brown.
The decision will now move to the Lackawanna County Commissioners for a vote on October 16.