HCCA CEO creates new loan company

The CEO of Tulare hospital has embarked on a new field: finance.

Search by Voice revealed that a new healthcare finance company, Vi Healthcare Finance, Inc, was registered at the home address of Dr Benny Benzeevi, CEO of Healthcare Conglomerate Associates (HCCA), the company that operates the Regional Medical Center of Tulare (TRMC).

This company was recently considered by the Southern Inyo Healthcare District Board of Directors for a line of credit, although the Voice was unable to confirm whether the board voted to approve the loan.

The line of credit serves both to repay existing debt to HCCA and to finance the district’s current operational expenses.

A presentation from a May board meeting showed that Southern Inyo District owed HCCA over $ 1 million in management fees and $ 813,184 in line of credit from the hospital’s management company; South Inyo District had only reimbursed $ 346,383 as of the date of the meeting.

A resolution submitted to the district board for consideration on July 11, again on July 15, and again on July 19, stated that the company was “prepared to extend a line of credit to the district and lend funds to the District under this line of credit from time to time, which line of credit will be secured by anticipated District tax revenues.

The company was registered with the California Secretary of State’s office on June 30 of this year, with documents signed by Bruce Greene, the same attorney who represents both the local health district of Tulare and the HCCA.

Greene also signed the incorporation papers for HCCA after being chosen as the hospital’s operating partner.

Separate ways

Benzeevi spoke to Voice and confirmed his involvement in the new company, but insisted that it is a separate company, unrelated to his other companies.

Benzeevi, in addition to being chairman / CEO of HCCA, is also chairman of Medflow, a company that was originally hired to assist TRMC with its emergency services. Another company, Tulare Asset Management, is also registered at the same address as Vi Healthcare Finance.

“[Vi] is a loan company that lends money, ”Benzeevi said. “It has nothing to do with Tulare – Inyo has a need and this is an offer for them.”

Although the company offered a loan to the Southern Inyo Healthcare District, Benzeevi said the company was not specifically targeting Lone Pine Hospital or Tulare Hospital.

“We have a lot of businesses. It just happens to be something that has come – it has nothing to do with anyone, nowhere. “

He added that there aren’t many lenders focusing on hospitals or healthcare providers.

“He was not trained because of one of the hospitals. If a hospital happens to be a borrower, ”said Benzeevi,“ we are prepared to consider the hospital as a borrower ”.

Open permissions

Although HCCA has two standing authorizations granted by the hospital’s board of directors to solicit and execute loans, Benzeevi reiterated that the Vi funding transaction was unrelated.

“If Tulare has a need, [Vi] could be for them too. But that has nothing to do with any of these hospitals, ”he said. “[Southern Inyo] has a need, and this business is lending money. It has nothing to do with HCCA or any of the other companies. It is its own different matter.

On March 22, HCCA was authorized to seek approximately $ 79 million – intended both to finance the completion of the besieged hospital tower project and to buy back existing bonds – from HUD-backed lenders and financiers. alternatives, in order to find the option that would work best for the needs of the hospital.

Most recently, on June 20, HCCA was authorized to apply for a loan of $ 22 million to cover operating expenses and repayment of existing debt.

Benzeevi made it clear that hospital management has yet to find a suitable lender for the loans, including options with Vi Healthcare.

“I have no plan at the moment. At this point what we want to do is find the best terms and the lowest interest rate, ”he said.

“I don’t know if Vi is the one doing this.”

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