The Authority was established by the Arizona legislature in 1977 to issue bonds for the purpose of improving health care for residents of this state by providing less expensive financing for health care facilities. Historically, the Authority issued tax-exempt bonds exclusively for Arizona's largest and highest credit rated hospitals. However, the Authority realized that those hospitals with the greatest need for financing would not qualify for Authority issued tax-exempt financing due to their credit rating. Additionally, smaller non-hospital facilities were not eligible for financing under the Authority's enabling legislation.

In 1996, the Authority began a process to expand its mission to encompass a broader spectrum of health care financing. The Authority desired an enhanced ability to address unmet need for health care facilities in rural and underserved areas of the state. The Authority developed a strategic plan that would position it to be responsive to the needs of rural and underserved areas of the state while maintaining its historical commitment to the large non-profit hospitals.

In 1997, the Authority led a successful effort to amend its enabling legislation to allow more flexibility in issuing bonds. These amendments permitted the Authority to finance a greater array of health care projects and removed the requirement for high credit ratings.

In 1999, the Authority created a program to provide low-cost loans for rural and underserved health care facilities (Arizona Health Assistance Program). Since its inception, the Arizona Health Assistance Program has loaned more than $1.3 million to critical health care providers across Arizona. Also, in 1999, the Authority hired its first Executive Director. Blaine Bandi represents the Authority with over 25 years experience in healthcare administration. Mr. Bandi has significant experience in the areas of healthcare planning, primary care administration, and rural and medically underserved populations in Arizona.

In 2003, the Authority again led a successful effort to amend it enabling legislation. These amendments permitted the Authority to issue bonds for nonprofit healthcare organizations with multi-state operations and expanded the Authority's ability to issue taxable debt for health care facilities. The Authority also received a grant from St. Luke's Health Initiatives to provide targeted technical assistance to rural, medically underserved communities to identify community needs and increase their ability to leverage other resources and otherwise improve organizational capability. St. Luke's is a public foundation created by the sale of the St. Luke's nonprofit healthcare system. St. Luke's grant programs focus on increasing the organizational capacity of health and human services, as well as on promoting grassroots community development. Funds are awarded in the form of a "mini-grant" in cooperation with the Arizona Department of Health Services, Office of Health Systems Development. Since its inception, the "mini-grant' program has awarded more than $300,000 to rural and medically underserved communities and tribal reservations.

The Authority is committed to financing the future of healthcare in Arizona. We serve as a catalyst in the development of healthcare services in rural and underserved areas of the state. As a quasi-governmental body, we are uniquely positioned to leverage both public and private financing for the development of new services and nurturing of appropriate existing services throughout Arizona.