In 2015, Reinvestment Fund partnered to provide Primary Health Network (PHN) with $18 million in financing to develop a new multi-service health facility in Sharon, Pennsylvania. Since its inception in 1984, PHN, a private, nonprofit organization, has worked with local communities to develop and implement community health centers. PHN includes 33 service facilities in Pennsylvania and Ohio.
Today, PHN employs over 140 physicians, dentists, physician assistants, certified nurse practitioners and other healthcare professionals and a support staff of over 370. It reaches more than 106,000 people annually through its health and educational services. In recognition of its high quality care, PHN has been Joint Commission accredited since 1997.
The new facility will serve as PHN headquarters and expand health services in downtown Sharon, PA, the town where PHN was founded. The new 78,000 square foot, 5-story facility will house PHN’s primary care, behavioral health, OB-GYN, pediatrics and urgent care. It will also house a variety of specialty services through the Sharon Regional Health System and the University of Pittsburgh Medical Center, the Program of All-inclusive Care for the Elderly (PACE) by Living Independence for the Elderly Northwestern Pennsylvania, and juvenile counseling services by Youth Advocacy Programs.
The new facility is expected to accommodate 80,000 patient visits annually, almost doubling the PHN’s current capacity in Sharon of 43,000 annual visits. Exam rooms are expected to increase to 36, from 20, and the new urgent care, in partnership with the Sharon Regional Hospital, will host over 10,000 visits a year, providing a diversion from the emergency room and connection to a primary care home. The completed facility will house 180 jobs, 70 of them new, and of which 103 of which will be PHN, 77 will be other tenants. The project is also expected to generate 140 construction jobs.
This facility will allow PHN to consolidate seven separate sites across Sharon and bring services together under one roof. Sharon is designated as a medically underserved area by the Health Resources and Services Administration, an agency of the U.S. Department of Health and Human Services. This expansion is expected to improve access to health care and aid economic revitalization in the downtown area. The project is the first new commercial development in Sharon since 1969.
This transaction was supported by a variety of financial products. Reinvestment Fund and Cornerstone Commonwealth Group provided $18 million New Markets Tax Credits for this project in a severely distressed area, which generated almost $6 million of equity from Chase. Reinvestment Fund provided a $9.4 million senior leverage loan.