Carilion needed money.
The health care giant was on the verge of announcing its plans to convert to a clinic, and its flagship hospital in Roanoke was in the midst of a $105 million expansion. More cash was necessary to pay outstanding debt and buy expensive new medical equipment.
The nonprofit decided to borrow money, even with a multimillion-dollar surplus at its disposal.
Just how Carilion raised that money turned out to be a costly mistake.
Seven years later, Carilion is still tallying how much it lost in a series of complex financial transactions related to the $308 million in tax-exempt bonds it issued on Dec. 14, 2005. But in court papers, the losses were pegged at “many millions of dollars.”
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