State Agency also receives new name: the Health and Education Facilities Authority

The Minnesota Health and Education Facilities Authority today announced an expansion of its services, as the state agency is now able to assist nonprofit healthcare organizations across the state. This enhancement is a direct result of the recently enacted Health and Human Services Omnibus bill (Special Session 1: H.F. 2/Chapter 3), signed into law by Governor Tim Walz on June 12, 2025.

The Authority was originally created by the legislature in 1971 as the Minnesota Higher Education Facilities Authority to assist nonprofit higher education institutions finance large capital projects such as classrooms, science labs, dormitories, or college athletic facilities.

The new law allows the Authority to provide similar financing assistance to nonprofit healthcare institutions such as hospitals, clinics, and nursing homes. The Authority will continue to serve nonprofit colleges and universities. Minnesota now joins thirteen other states who provide similar financing authority for both nonprofit higher education and healthcare.

This expansion comes at a critical time for Minnesota’s healthcare systems, many of which are navigating financial headwinds while continuing to invest in modern, high-quality care. The newly renamed Authority provides a streamlined, cost-effective option for nonprofit healthcare providers to finance capital improvement projects, including facility renovations, new construction, and refinancing of existing debt.

“This move responds to the increasing demand we’re seeing from healthcare institutions that need the same type of affordable, long-term financing we’ve successfully provided in higher education for over 50 years,” said Barry Fick, Executive Director of the Minnesota Higher Education Facilities and Healthcare Authority. “We are committed to helping healthcare leaders focus more of their resources on patients and less on complex financing structures.”

“We look forward to serving healthcare, just as we serve higher education—by driving down capital financing costs for these important Minnesota nonprofits,” said Barry Fick, Executive Director of the Authority. “I also want to thank State Senator John Hoffman and State Representative Kristin Bahner for their tireless advocacy for this legislation at the Capitol.”

“We are proud of our more than 50-years of serving Minnesota colleges and universities and are excited the legislature chose to expand our work to hospitals, nursing homes, and clinics across Minnesota,” said Bonnie Anderson Rons, Chair of the Authority’s Board of Directors.

As a full-service conduit financing authority, the Minnesota Higher Education Facilities and Healthcare Authority receives no state funding and operates solely on borrower fees, which are among the lowest in the industry. The Authority currently manages more than $1.3 billion in assets and brings a strong reputation for efficient, client-centered service.

“This is about more than financing,” added Fick. “It’s about enabling Minnesota’s nonprofit healthcare providers to focus on what matters most, which is delivering exceptional care in every community they serve.”

The legislation changes the agency’s name from the Minnesota Higher Education Facilities Authority to the Minnesota Health and Education Facilities Authority and increases the Authority’s debt limit from $2 billion to $4 billion.

Nonprofit healthcare organizations interested in learning more are encouraged to visit the Authority's website at www.mnhefa.org or by calling 651-296-4690.

About the Minnesota Health and Education Facilities Authority (MHEFA):

The Authority is a state agency that serves as a full-service conduit bond financing authority. Authority Fees are substantially lower than authorized by the Internal Revenue Service and represent a solid value for nonprofit borrowers. The Authority is entirely funded by fees charged to borrowers and receives no tax revenue or any other government funding. The Authority consists of eight board members appointed by the Governor, with advice and consent of the Minnesota Senate. The state agency is led by an Executive Director. Authority debt is not backed by or supported by the State of Minnesota, and the credit rating and debt capacity of the State are not affected by bonds issued through the Authority. The Authority has never had a bond default in its more than 50-year history.

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