Primary Health Network (PHN) built a new 45,000 square foot, health and social services facility in Punxsutawney, PA thanks in part to Reinvestment Fund’s $11.5 million New Markets Tax Credit (NMTC) transaction with JPMorgan Chase as the investor.
On a 7-acre parcel, the new site features 20 medical plus 10 behavioral health exam rooms, up from its previous 12 exam rooms, and allows PHN to double its total patient visits to 38,000 per year and increase the types of primary care services offered.
With a variety of other health and social service providers co-located in the new facility, PHN believes the building will enhance the community’s access to care and help the providers realize operating efficiencies and benefit from cross referrals. On-site amenities include a pharmacy, community meeting space and a café. The new facility houses 100 jobs.
PHN is now is Pennsylvania’s largest Federally Qualified Health Center and has service sites in 2 northeastern Ohio counties. In recognition of its high quality care, PHN has been Joint Commission accredited since 1997.
This transaction was supported by a variety of financial products. Reinvestment Fund and Chase provided $11.5 million of New Markets Tax Credits for this highly distressed, non-metro location which generated $3.4 million of equity from Chase.
Reinvestment Fund and LIIF provided a $3.4 million senior leverage loan. We funded an additional $2 million leverage loan for the energy-efficient components of the project. Reinvestment Fund and LIIF also made a $2 million short term loan to PHN outside of the NMTC transaction to help PHN make a $3.1 million loan to the project.
This project is part of the Community Health Center Financing Initiative which provides community health center operators with affordable, flexible financing for the construction, renovation or expansion of their facilities. The initiative is a national partnership between the Low Income Investment Fund (LIIF) and Reinvestment Fund with support from the Kresge Foundation.
LIIF and Reinvestment Fund are leading nonprofit community development financial institutions that, together, have lent more than $2 billion to support community businesses. They combine this expertise with a patient, nimble approach to financing, especially when working with organizations that are new to capital projects and debt.