The U.S. Department of Housing and Urban Development announced the commitment to insure a $37.1 million mortgage for Knox Community Hospital in Mount Vernon, Ohio.
The loan is made possible through the Federal Housing Administration’s Section 242 hospital mortgage insurance program.
“By helping to make projects like this possible, FHA is not only improving the community’s health care, it is also contributing to the area’s financial well-being by creating jobs and supporting local economies,” said FHA Acting Commissioner Carol Galante.
Knox is a non-for-profit healthcare provider that operates a 115 bed acute care facility. The loan will be used to renovate operating rooms, expand the catheterization laboratory for diagnostic and interventional cardiac services, and implement a hospital-wide electronic health records system. Construction cost is $21.2 million. In addition, $15.9 million of 2004 revenue bonds will be refinanced.
HUD estimates the construction project will support approximately 328 full-time jobs and provide an economic boost of $61 million to the community. Knox Community Hospital representatives estimate that, following construction completion, the hospital will support a full-time employment base of approximately 730 jobs.
Since 1968, FHA has insured 401 mortgage loans totaling $17.4 billion to hospitals in 43 states and Puerto Rico.
Written by John Yedinak