MassDevelopment has issued $865,515,000 in tax-exempt bonds on behalf of Mass General Brigham Incorporated to support a major expansion and modernization of the health system’s facilities in Boston. J.P. Morgan Securities served as the lead underwriter, selling the bonds through a public offering.
Proceeds from the bond issuance will help fund construction of a new 482-bed facility at 55 Fruit St. on the main campus of Massachusetts General Hospital in Boston. The building will be largely dedicated to oncology and cardiovascular services, expanding the system’s capacity in two critical areas of patient care. Construction is already underway, and the facility is scheduled to open in two phases between 2027 and 2030.
The financing will also support a significant redevelopment of Brigham and Women’s Faulkner Hospital in Boston’s Jamaica Plain neighborhood. At that campus, Mass General Brigham plans to add a five-story expansion to the existing hospital building, providing additional clinical space to accommodate future growth and operational needs.
In addition to the expansion of the main hospital structures, the Faulkner Hospital project includes the purchase of new medical and support equipment. The plans call for improvements to on-site parking infrastructure, with bond proceeds earmarked for the construction and renovation of garage facilities. These upgrades are intended to enhance access and circulation for patients, visitors, and staff.
A portion of the tax-exempt bond proceeds will also be used to refinance previously issued debt, allowing Mass General Brigham to restructure parts of its existing obligations. The combination of new project funding and refinancing reflects an effort to align the health system’s capital structure with its long-term facility plans.
Economic Development Secretary Eric Paley, who chairs MassDevelopment’s Board of Directors, highlighted the importance of the transaction for the state’s healthcare ecosystem. He noted that Massachusetts benefits from being home to globally recognized hospitals such as Mass General Brigham and emphasized MassDevelopment’s role in providing access to tax-exempt financing as the system expands its presence in Boston.
The bond issuance supports large-scale capital projects at two flagship campuses within the Mass General Brigham network, reinforcing Boston’s position as a major center for advanced medical care and hospital-based investment.
