The U.S. Department of Housing and Urban Development (HUD) made a commitment to insure a $14.3 million loan to the Stillwater Hospital Association in Columbus, Montana.
Made possible through the Federal Housing Administration’s (FHA) Section 242 Hospital Mortgage Insurance Program, the loan will be used to construct an entirely new facility with a new emergency room, inpatient and outpatient surgery areas, laboratory, imaging department, a primary care clinic, and a home health agency.
“By supporting hospital projects like this one in Montana, FHA is not only helping to expand access to medical care, it is also contributing to the financial well-being of communities by creating jobs to stimulate local economies.” said Acting FHA Commissioner Robert Ryan.
“Critical access hospitals like this one in Columbus are just that – critical – and it’s essential they have the space and facilities to serve the critical needs of Montana patients. This loan to the Stillwater Hospital Association is a smart investment that will support a healthy community and economy for years to come by supporting life-saving care and good-paying Montana jobs during construction and beyond,” said Montana’s senior U.S. Senator Max Baucus.
HUD estimates the Stillwater Hospital construction project will support 290 full-time jobs and provide an estimated economic stimulus of more than $41.2 million to the community.
Once completed, it is estimated the project will support 52 full-time jobs and provide an annual economic benefit of $9.8 million. HUD’s estimates are based on results from an economic model used by public and private institutions to examine a variety of economic development issues.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated$4.2 million in interest expense over the life of the loan. Since 1968, FHA has insured 397 mortgage loans totaling $17.1 billion to hospitals in 43 states and Puerto Rico.
FHA’s Section 242 Mortgage Insurance Program for Hospitals enables hospitals to obtain capital to finance new construction and renovation of acute care hospitals. Eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.
Stillwater Hospital Association is managed by Billings Clinic, Billings, Montana, a tertiary-level hospital that owns and manages six other hospitals and physician clinics in South Central Montana and Wyoming.