WhidbeyHealth Secures $10 Million Emergency Credit Line, No Plans to Use It

WhidbeyHealth will pay $50,000 to borrow money it has no plans to touch.

The WhidbeyHealth Board of Commissioners authorized a $10 million emergency credit line at its regular meeting Thursday, March 26, adopting a resolution for a limited tax general obligation and revenue bond, also described as a taxable revolving line of credit, from Coastal Community Bank. The new agreement expires April 2, 2027.

Chief Financial Officer Paul Rogers told the board and reporters the district has no current intention of drawing against the funds. "There are no known capital expense or operating expense that this money needs to be used for at this time," he said. "I look at it as an insurance policy, a funding of last resort."

Rogers framed the arrangement as a precautionary backstop, designed to give WhidbeyHealth faster access to capital if an unexpected equipment failure, urgent facility repair, or unplanned operational cost emerges. The $50,000 processing fee is the district's primary cost to secure the bond.

The board approved an identical revenue bond agreement a year ago, but that prior arrangement expires in April. Rogers had hoped the earlier bond would improve the district's credit rating. It did not. On March 16, Moody's Ratings, a global risk assessment firm, confirmed the hospital district's prior credit ratings without an upgrade.

Board member Dr. Mark Borden said he researched the issue "in depth" and decided the new bond was a good idea, particularly given its potential benefit to the district's credit rating.

WhidbeyHealth is the public hospital district serving Whidbey Island and Island County. The newly authorized credit line remains available through April 2, 2027, should an unforeseen need arise.