Sarasota hospital uses strong bond ratings to fund $1B in projects

Sarasota Medical Health Care System is taking advantage of strong bond ratings to advance more than $1 billion in capital projects.

Having recently begun construction on its new $507 million North Port campus with several other expansion projects underway, the system reports, according to a news release, the capital projects are supported by strong and upgraded bond ratings from Moody’s Investors Service and Fitch Ratings.

Image courtesy of Sarasota Memorial Health Care System

Strong bond ratings significantly lowers SMH’s cost of borrowing for major capital improvements, the release states. Last week, the Sarasota County Public Hospital Board voted to issue up to $425 million in revenue bonds this year to help cover capital project costs. Also this week, credit rating agency Moody’s upgraded its rating to Aa3 while Fitch reaffirmed the health system’s “AA-” rating in 2025.

Underway projects include:

• SMH-North Port: Scheduled to open in 2028, it will be the city’s first acute-care hospital. The nine-story facility will initially host 100 beds with additional space to double capacity to 208 beds as demand grows.
•  Milman-Kover Cancer Pavilion: Opening in spring 2026 at the Sarasota campus, the outpatient cancer pavilion is part of the health system’s expanding Brian D. Jellison Cancer Institute. It provides cancer patients, caregivers and medical providers access to the latest treatments, technologies, clinical trials and supportive care.
• Venice Rehabilitation Pavilion: Scheduled to begin construction this year, the new, $82.5 million , four-story facility in Venice will offer inpatient and outpatient rehab services to the South County area.

“Our strong bond ratings reflect our commitment to fiscal responsibility and clinical excellence,” SMH CEO David Verinder says in the news release. “By balancing mission and margin and lowering our borrowing costs, we can reinvest our savings directly into the infrastructure and technology needed to deliver our 5-star promise to the community.”