March 14, 2011

Hospitals call FHA when they need help!

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All across the country, hospitals and other health care facilities that are struggling to keep operating don’t call 9-1-1 when they need help. They dial F-H-A.

FHA’s Section 242 program makes it possible for hospitals, assisted living facilities and other health care institutions to finance critically needed construction, rehabilitation, and equipment. FHA mortgage insurance helps these hospitals to enhance their creditworthiness, lower their interest payments, and save them millions of dollars in process.

For example, FHA recently approved a deal to refinance a $29 million loan for a hospital in Riverside, California that is expected to save the facility nearly $3 million a year. An FHA-insured mortgage loan for a hospital in Albany, New York provided $322 million to renovate the 631-bed facility and construct a new six-story addition. As a result of these efforts, FHA is helping to maintain a system of medical care for people who might otherwise be forced to travel great distances to receive the care they need.

Since the program began 1968, FHA has insured 395 mortgage loans totaling $17 billion to support hospitals in 43 states and Puerto Rico.

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