Congressman Glenn Thompson (PA-5th District) and USDA Rural Development State Director Thomas Williams have announced that the USDA has selected Elk Regional Health System to receive an $11.7 million Community Facilities direct loan.
The Health System will use proceeds from the loan in several different ways.
First and foremost, the Health System will put $6.1 million in loan proceeds toward a $10.3 million expansion project at Elk Regional Health Center. The Health System will also use $1 million in loan proceeds to upgrade its electronic medical records system in keeping with “meaningful use” requirements under federal health reform legislation. The remaining $4.6 million in loan proceeds will be used to refinance some of the Health System’s debt.
“I can’t say enough about the Rural Development program that makes this possible through the U.S. Department of Agriculture,” Congressman Thompson said. “It is a recognition of the urgent needs in rural communities.”
Elk Regional’s $10.3 million building and modernization project will add a 37,500 sq. ft. third floor to the Health Center that will house 42 new, private patient rooms, each with its own bathroom and close proximity to modern nurse work stations. The new floor will also house a new, more secure 10-bed Generations Unit, Elk Regional’s geriatric behavioral health unit.
Also as part of the project, Elk Regional will renovate a portion of its operating suite and construct a new Family Unit there. The new Family Unit will contain four OB/GYN patient rooms and four rooms for labor, delivery and recovery.
Once complete, the new floor will replace patient rooms that are housed in buildings constructed in 1941 and 1958, meaning Elk Regional’s patients will be cared for in a fully modern facility. Construction will begin in spring 2011 and will be complete by the end of 2012.
“These improvements to Elk Regional Health System will help them deliver excellent care to the residents of Elk and Cameron counties,” Congressman Thompson said. “This project will benefit the entire community with jobs to bring this planned expansion from the drawing board to real bricks and mortar.”
According to Gregory P. Bauer, the President and CEO of Elk Regional Health System, the USDA loan will ensure that the Health System enjoys a secure, vibrant future for years to come.
“The loan will allow us to do a number of things that will ensure Elk Regional's health and stability for years to come,” Bauer said. “The loan allows us to move forward with constructing our new floor and also allows us to update our electronic medical record system to bring it in line with new requirements under the health reform bill. But it also allows us to refinance some of our current debt at a dramatically reduced interest rate. We are grateful to the Congressman Thompson and the USDA for their assistance in helping us secure this loan.”
With approximately 1,200 employees, Elk Regional Health System is the largest employer in Elk and Cameron counties and boasts a $135.9 million regional economic impact.
Thomas Williams, the state director for the USDA Rural Development office, said Elk Regional’s building project is part of a larger, nationwide movement to restore the nation’s economy.
“This hospital project will not only provide infrastructure expansion and modernization in a rural county, it will contribute to the Obama administration’s continued efforts to turn the economy around and create quality jobs,” Williams said. “These projects, and others like them, are contributing to fully restore the American economy while improving the quality of life throughout rural Pennsylvania.”
Funding for the $11.7 million loan is being provided through the Community Facilities program, which is administered by the USDA Rural Development office. The Community Facilities program helps finance and develop essential community facilities for use in public areas. These facilities include child care centers, hospitals, medical clinics, assisted living facilities, fire and rescue stations, police stations, community centers, public buildings and public transportation.
Through its Community Facilities program, the USDA ensures that such facilities are available to all rural residents. Community Facilities funds are available to public bodies and non-profit organizations.
The USDA, through its Rural Development mission, administers and manages more than 40 housing, business, community infrastructure and facility programs through a national network of 6,100 employees located in the nation’s capital and 500 state and local offices. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. The Rural Development office has an existing portfolio of more than $138 billion in loans and loan guarantees.
More information about USDA Rural Development can be found online at www.rurdev.usda.gov.