Health Education Authority of Louisiana
The Health Education Authority of Louisiana (HEAL) was created through legislation to promote the medical and/or health education activities of various public and private organizations in Louisiana. HEAL aims to promote the health and welfare of Louisiana residents by encouraging and assisting in medical care access, enabling prompt and efficient health and related services being offered at a reasonable cost by both public and private institutions and organizations in modern, well-equipped facilities, and by working with partner organizations to meet excellent standards for health care and health education that will place Louisiana in the position of regional, national and international leadership.
HEAL functions as a quasi-governmental agency that assists the primary institutions named in the creating legislation -- LSU Health Sciences Center in New Orleans and Tulane University Health Sciences Center -- and participating institutions, which could bestate and local government agencies, nonprofit/501C3 organizations or other groups working in health care, health education or the biological sciences in obtaining tax-free bonds to construct, renovate or enhance facilities within a 10-mile radius of the Medical Complex area in New Orleans and LSU Health Sciences Center in Shreveport.
HEAL is a self-generating entity and does not received any funds from the State of Louisiana, parish or federal governments.
HEAL operates within the mission and goals of the Louisiana Department of Health and Hospitals, but is an independent entity overseen by a 13-member board of trustees. The board includes members appointed by the Governor, Tulane University Educational Fund, LSU Health Sciences Center in New Orleans, LSU Board of Supervisors, Louisiana State Medical Society, Mayor of the City of New Orleans and the Louisiana Dental Association, who govern HEAL's operations.
The Secretary of the Department of Health and Hospitals (DHH) reviews and must approve all HEAL Bonds issued to qualified organizations, but bonds are issued in HEAL's name and are not obligations of the State of Louisiana or DHH.
HEAL has the authority to issue bonds to primary institutions (LSU Health Sciences Center in New Orleans, Tulane University Health Sciences Center and other entities specifically listed in the legislation that created HEAL) and participating institutions (any state, local, nonprofit or other group working in health care, health education or biological sciences) to build, renovate or expand facilities in the specified areas of New Orleans and Shreveport.
A bond is a form of a loan that governments, companies, banks, public utilities and other entities utilize that pays the bond holder a set interest rate from the date it is issued until the specified maturity date.
HEAL has the authority to issue bonds in its name that are exempt from federal, state and local tax, so bond recipients pay only for the land/property, with no additional costs associated with the Issue. Only the property financing is tax free, bond recipients pay taxes on all aspects of the project for which the Bond Issue is intended. Bond recipients are not exempt from property taxes on their facilities.
Organizations that receive HEAL bonds must prove they are able to pay the Bond Issue. Certain restrictions apply to the form of revenue organizations can use toward repayment and demonstrating financial sustainability.
Why use HEAL Bonds?
HEAL Bonds offer substantially reduced initial cost and interest rates because they are exempt from:
What kinds of financing methods are available?
Prospective borrowers might be eligible for public financing through a method of private placement or a pooled system. The type of financing will depend on the amount of capital involved and the specific needs of the borrowing organization. HEAL works with clients to help them determine the best financing method for their HEAL Bond.
How are the bonds secured?
Tax-free financing may involve a loan agreement or the more traditional lease procedure. The borrower may pledge revenues (in excess of the organization's operating costs) and other covenants to pay debt service on the bonds.
Contact HEAL: Health Education Authority of Louisiana (HEAL) Office
Jacob Johnson, Executive Director
Point-of-Contact and Custodian of Public Records Requests
300 LaSalle St., Suite B
New Orleans, Louisiana 70112