New critical care hospital to offer broad range of medical and surgical services
WASHINGTON, DC – August 28, 2012 – (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to St. John’s Lutheran Hospital in Libby, Montana. The $32 million loan is made possible through the Federal Housing Administration’s (FHA) Section 242 Hospital Mortgage Insurance Program.
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St. John’s Lutheran Hospital includes a 25-bed acute care hospital, outpatient clinic, and a foundation. As a federally designated critical access hospital, it provides primary and acute medical/surgical services. However, it also offers several atypical services for such facilities. These include orthopedics, urology, outpatient chemotherapy, and asbestos related specialty care.
The FHA-insured mortgage loan will be used to construct a 79,000 square foot, 2-story replacement hospital adjacent to the existing facility. The new structure will include a new inpatient unit with modern private rooms, two expanded operating rooms, clinical and diagnostic areas, laboratory, surgical recovery rooms, emergency room, support areas and equipment.
“By supporting hospital projects like this one in Libby, Montana, FHA is not only helping to provide to state-of-the-art health care facilities, itis also contributing to the financial well-being of communities by enabling investments that create jobs and support local economies.” said Acting FHA Commissioner Carol Galante.
“The proposed new hospital’s FHA finance commitment is a major economic boost for health care access to Libby and its residents. It’s not often realized that HUD is a major partner in assisting small and rural communities. We strive to secure financing to support health care facilities that are vital to a communities’ well being,” said Rick M. Garcia, HUD Rocky Mountain Administrator in Denver.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated$21 million in interest costs over the life of the loan. Since 1968, FHA has insured 401 mortgage loans totaling $17.4 billion to hospitals in 43 states and Puerto Rico.
FHA’s Section 242 Mortgage Insurance Program for Hospitals enables hospitals to obtain capital to finance new construction and renovation of acute care hospitals. Eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.
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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
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Contact:
Lemar Wooley
(202) 708-0685