CHEFA OKs $200M in bonding for Stamford Health campus expansion

Hartford Business Journal – Monday, July 20, 2026
By David Krechevsky

The Connecticut Health and Educational Facilities Authority (CHEFA) recently approved $200 million in tax-exempt bond financing for Stamford Health, clearing a major financing hurdle for the health system’s planned $275 million transformation of its Bennett Medical Center campus.

The financing, approved last week by CHEFA’s board, will fund construction of a new cancer center and parking garage while relocating inpatient rehabilitation services. The bond issue is scheduled to price in September.

The bonds have a face value of $200 million, but are expected to generate about $207.5 million in proceeds because investors are projected to pay a premium above the bonds’ face value, CHEFA said.

In June, Stamford Health announced a plan to transform its campus by modernizing infrastructure and expanding services.

The multi-year plan focuses on four key initiatives: building a new Carl & Dorothy Bennett Cancer Center, transforming the current Bennett Cancer Center into a dedicated behavioral health facility, relocating and expanding the Van Munching Inpatient Rehabilitation Unit, and improving parking for patients, staff and visitors.

The total estimated project cost is $275 million, including $31 million in interest payments on the bond financing that will be owed while construction is underway, officials said.

Mike Veillette, senior vice president and chief finance officer for Stamford Health, said the additional funds needed for the project will be raised through philanthropy, “as well as responsible financial stewardship, which allows us to reinvest some of our ongoing operating funds.”

In its credit analysis, CHEFA cited Stamford Hospital’s strong position in Fairfield County, where the independent health organization serves more than 330,000 residents.

The authority noted the hospital’s affiliations with New York-based Hospital for Special Surgery and Dana-Farber Brigham Cancer Center, as well as its partnership with the Columbia University medical school. Stamford Health also operates a network of more than 350 outpatient sites throughout Fairfield County.

CHEFA also cited favorable operating trends. Its analysis said Stamford Hospital, which has 305 licensed beds, has maintained an BBB+ credit rating with a stable outlook from Fitch Ratings, while utilization has increased across nearly every major category over the past five fiscal years.

The authority did note some financial pressures, including higher operating expenses, inflation and capital investments, including Stamford Health’s recent Epic electronic health record implementation, which cost nearly $70 million. Still, it said the hospital had 142 days cash on hand in fiscal 2025, above Moody’s median.

Note: This article was updated to correct that Stamford Health has a partnership with the Columbia University medical school and not the Cleveland Clinic, that Stamford Hospital is licensed for 305 beds, not 330, and that its credit rating with Fitch is BBB+.

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