Rural Pennsylvania hospital leverages New Markets Tax Credits
Client need
The development of a federally qualified health center anchored multi-service facility to accommodate the expansion of a large healthcare provider, operating 45 service facilities throughout 13 counties in Pennsylvania and Ohio. The expansion into rural Pennsylvania, a service area with a population of nearly 63,000, allowed for improved access to primary healthcare for residents that lacked access.
A new centrally located, three-story 45,000 square-foot Federally Qualified Health Center provides much needed healthcare to rural Pennsylvania. The new facility created 77 direct and 35 indirect full-time jobs and furthered the healthcare provider’s mission to provide quality primary care services and access to specialty care to the communities they serve. New Markets Tax Credits (NMTC) were identified as a qualified financing option to help fill a funding gap with the development of the facility.
Baker Tilly Capital solution
Baker Tilly Capital identified and sourced New Markets Tax Credit allocations through community development entities as a solution for filling the new facility’s gap in financing. Through a community impact assessment, the significant jobs and fulfilling a need made this project a qualified candidate. Our team worked closely to structure and close the deal. The NMTC financing made the project economically feasible and cost effective to build.
Results
The Baker Tilly Capital NMTC team assisted in securing more than $12 million of New Markets Tax Credit allocation to support the construction of the new three-story, 45,000 square-foot health service facility in rural Pennsylvania. The new facility allowed for the expansion of primary care services, dental and behavioral healthcare. In addition, one third of the building will be leased to one of the nation’s largest rural health services organizations, which will operate a sleep program and laboratory services at the facility.
For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team.