InnoVative Capital Completes FHA 242/241 Financing Knox Community Hospital $51.5 Million Family Care Center Project
SPRINGFIELD, Pa. and MOUNT VERNON, Ohio, April 3, 2019 (Newswire.com) - InnoVative Capital, LLC, a HUD-licensed FHA Mortgage Lender and Municipal Advisory Firm, has closed a $41.5 million HUD Section 242/241 mortgage loan for Knox Community Hospital (KCH). In conjunction with the HUD loan is an equity contribution of $10.0 million which increases KCH's expansion project to $51.5 million. The FHA mortgage insured fixed rate loan has a term of 27-years and is collateralized by the issuance of Ginnie Mae securities.
KCH's project will focus on facility expansion with the construction of its new medical office building (the name of the new "Center" is yet to be announced) and renovation within its existing medical office building (the "Knox Medical Pavilion"). The Center will be a new four-story, 90,000 sq. ft. medical office building. The cornerstone of which will be the creation of a Family-Focused Birthing Center, including new pediatric and OB/GYN physician offices, the relocation of inpatient birthing unit from the main hospital, and the construction of a new bridge to connect the Center's inpatient birthing unit to the main hospital's perioperative suite. The renovation of 4,000 sq. ft within the Knox Medical Pavilion will permit significant enhancements to KCH's accredited comprehensive community cancer center.
"As the healthcare industry moves (appropriately) from a pay-for-volume methodology to enhanced focus on pay-for-value, we see the need to focus even more on improving patients' access to care. Caring for our community from the moment they are born, through their pediatric years, to addressing their family medical needs as they age makes sense when you are focused on providing care to help people stay healthy instead of waiting until they get sick. With the prevalence of cardiovascular disease in both men and woman, placing emphasis on cardiac and vascular services, including cardiac rehabilitation, fits well into this continuum. This new facility will provide all of these expanded services in a convenient location on our current hospital campus. We are very excited to see this growth as KCH continues to enhance care (as we like to say) "In the community, For the community." - Bruce White, CEO of Knox Community Hospital
"We are very pleased to have had the opportunity to work with HUD on all three of KCH's HUD financings. As has been the case in the previous transactions, the collaborative interaction between KCH and HUD throughout the project development and loan underwriting processes led to the successful execution of the loan. In particular, the Hospital Group at HUD worked diligently to right-track the loan underwriting process despite being faced with the delays caused by the federal government's shutdown," said Alan P. Richman, InnoVative Capital's President and CEO.
About InnoVative Capital, LLC
InnoVative Capital's hospital financing services provide community, rural and urban hospitals with cost-effective capital access originated by InnoVative Capital's FHA Mortgage Bank and the execution of HUD Section 242/241 loans, as well as, through its Municipal Financial Advisory practice and the issuance of tax-exempt & taxable bonds, USDA loans, tax-supported debt, commercial loans and equity. InnoVative Capital's hospital representation includes healthcare real estate transactions, mergers & acquisitions and operational improvement consulting. InnoVative Capital's unique service-mix, incorporating its proprietary CFO HELPER® analytics, has successfully developed, structured and financed the modernization of community hospitals nationwide. InnoVative Capital has extensive experience with HUD/FHA and other hospital funding programs, having completed transactions in 35 states nationwide totaling over $1 billion. With a reputation for creative financing and turnaround solutions, InnoVative Capital continues to serve hospital and healthcare providers and their communities.
About Knox Community Hospital
Based in Mount Vernon, Ohio, Knox Community Hospital is Knox County's sole acute care facility serving its 60,000 residents. Governed by a Board of Trustees of twelve independently elected members, plus three physician board members, the 99-bed KCH, has experienced consistent operational and financial growth over the past decade. In addition to its main hospital, and its existing and planned on-campus medical office buildings, KCH has additional medical offices located throughout Knox County. The KCH mission is to deliver convenient, compassionate care with a focus on exceeding the community's expectations. With departments of primary and specialty care, KCH employs 89 physicians and mid-level providers offering a complete continuum of care from family medicine, internal medicine, pediatrics and OB/GYN services to advanced specialty care such as medical and radiation oncology, orthopedics, and interventional cardiology. As an essential provider of a comprehensive menu of health care services, KCH maintains a dominant market share.
Source: InnoVative Capital, LLC