Community Developments Investments (June 2016)
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Financing Health Centers: Supporting Community Wellness
National banks and federal savings associations (collectively, banks) are increasingly financing community health centers serving economically challenged neighborhoods to complement their community development efforts and meet a growing demand.
- Community Reinvestment Act and Health Centers Financing: Learn how bank financing of health centers may meet the definition of community development under the Community Reinvestment Act
- What Are Federally Qualified Health Centers? Health centers provide services regardless of a patient's ability to pay.
- Health Center Resource List
- Health Center Terminology
Health centers are actively seeking private funding to meet finance expansion plans and are looking to banks, lenders, and other investors, including community development financial institutions (CDFIs), for support.
- Health Care Financing and CDFIs: Financing for health centers is a growth market for banks and CDFIs.
Capital Impact Partners has proven that health centers are a good credit risk and has made them central to its lending activity.
- New Markets Tax Credits Leverage Health Center Expansion: A $7.22 million transaction allowed this health center to move into a newly renovated 33,000-square-foot space.
- Lease to Ownership Leads to More Patient Coverage: Purchasing a formerly leased facility saved money and enabled broader patient access.
Connecting community development to health services can break the link between poverty and poor health.
- Catalyzing the Investment: The Kresge Foundation's experience improves health outcomes for vulnerable populations.
Morgan Stanley explains that affordable housing alone cannot transform the lives of the families and individuals who live there.
Banks can play a meaningful role helping health centers expand and grow.
- Federally Qualified Health Center Spotlight: Erie HealthReach Waukegan Health Center: Two-thirds of all medically underserved residents in Greater Waukegan, Ill., have no access to affordable healthcare. This new Waukegan health center is changing the landscape.
The U.S. Department of Health and Human Services (HHS) and the U.S. Department of Agriculture (USDA) support health centers by offering bank loan guarantees.
- HHS Funding Sources for Health Center Facility Projects: The loan guarantee program administered by the Bureau of Primary Health Care and managed by Health Resources and Services Administration can help reduce unnecessary costs and increase access to capital.
- USDA's Community Facilities' Guaranteed Loan Program: USDA Rural Development seeks private sector partners to invest in essential community facilities in rural America.
This publication is part of:
Collection: Community Developments Investments
Deputy Comptroller
Barry Wides
Editorial Staff
Letty Ann Shapiro
Janet Fix
Design Staff
Vince Harris
For questions or comments, call (202) 649-6420 or email communityaffairs@occ.treas.gov. This and previous editions are available on the OCC's website at www.occ.gov.
Disclaimer
Articles by non-OCC authors represent the authors' own views and not necessarily the views of the OCC.
Deputy Comptroller
Barry Wides
Editorial Staff
Ted Wartell
Bill Reeves
David Black
Dan Gibbard
Design Staff
Rick Shacklette
Cheryle Robison
For questions or comments, call (202) 649-6420 or email communityaffairs@occ.treas.gov. This and previous editions are available on the OCC's website at www.occ.gov.
Disclaimer
Articles by non-OCC authors represent the authors' own views and not necessarily the views of the OCC.