FOR IMMEDIATE RELEASE
November 1, 2009

HUD APPROVES $142 MILLION DEAL
TO FINANCE LOCAL HEALTHCARE PROJECTS

The U.S. Department of Housing and Urban Development (HUD) recently announced a commitment to insure a mortgage loan to LRGHealthcare to complete a 97,000 square foot addition at the Lakes Region General Hospital campus; a 3,200 square foot internal expansion and 2,200 square foot renovation of emergency services at Franklin Regional Hospital; and the construction of a satellite facility to replace the Belknap Family Health facility in Meredith. In insuring this loan, HUD is acting by and through the Federal Housing Authority (FHA)’s Section 242 Hospital Mortgage Insurance Program.

“Three years ago, taking into account the current and future healthcare needs of our community, we launched a master facilities planning process,” says LRGHealthcare President & CEO Tom Clairmont.

“Through that process, all of these projects were identified as necessary. We were hoping to be able to first begin work on the LRGH addition, but thanks to the favorable rates secured through the HUD program, we are now able to move forward with all three of these needed projects. In addition, we can refinance existing debt at a favorable rate, which will provide long-term savings and stability to our community.

“We are grateful to HUD and FHA for insuring our bonds through this program; and to the New Hampshire Health and Education Facilities Authority for their willingness to issue these bonds. We also appreciate Executive Councilor Ray Burton’s role in helping us. To our knowledge, no other hospital in New Hampshire has participated in this program.

With this program, HUD and the FHA are providing a creative and cost-effective opportunity for hospitals to enhance the services they provide to their communities.”

“These projects are vital to our ability to meet the healthcare needs of our community both today and into the future,” explains Clairmont. “These projects will position us to meet the growing critical and intensive care needs of our growing senior population; meet evolving infection control and privacy standards by offering single room patient care throughout our LRGH facility; improve our infrastructure to support healthcare technology and the emergency capabilities our community needs during times of crisis; enhance our emergency services at FRH; and provide greater, more convenient access to primary and specialty care, as well as other outpatient services in the Meredith community.”

The Section 242 Hospital Mortgage Insurance Program does not loan money directly to hospitals. Instead, it insures the mortgage loans, which enables hospitals to obtain lower cost financing. By securing our loans through this program, it is estimated that LRGHealthcare will save $27 million over the life of the loan.

The new monies portion will be used for three major projects. The first is the construction, furnishing and equipping of an approximately 97,000 square foot patient care addition at the Lakes campus which will add 15 ICU beds, 5 step down beds, a 20 bed Elder Care Unit, a new power plant and a renovated and reconfigured lobby as well as the renovation of approximately 2,200 square feet in the existing hospital facility.

The second project will be an internal expansion and renovation of the emergency department at the Franklin campus, which will include a new triage area and expanded trauma and examination space.

The third project is replacement and expansion of the Belknap Family Health Meredith satellite facility. This facility will provide the opportunity for expanded primary and specialty physician services, lab and x-ray facilities and rehabilitation services.

Finally, some bond proceeds may be used to fund routine capital expenditures by LRGHealthcare during the three years following issuance of the bonds.

“This financing enables us to take a huge step forward in furthering our ability to meet our community’s current and future healthcare needs,” says Clairmont.“With financing in place for these projects, we will be able to work with our community to fund other facility and service enhancements, including the future upgrade of existing LRGHealthcare facilities to make them comparable to the standard of the new addition.

“As a not-for-profit healthcare charitable trust, this organization belongs to the communities we serve,” says Clairmont. “These projects will enhance healthcare services for everyone in our service area, from the towns on the northern end of Lake Winnipesaukee to the communities in the Three Rivers region. We are very excited about what this funding, and these projects, will do for our communities, and we hope you share our excitement.”

FHA's Section 242 Mortgage Insurance Program for Hospitals provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of acute care hospitals including major equipment needed to operate the facility. The eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.