Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $74.4 million loan refinancing for Meadows Regional Medical Center in Vidalia, Georgia.
Love Funding Senior Director of Hospital Finance Steven Hunt secured the loan through the U.S. Department of Housing and Urban Development’s 242/223(a)(7) loan insurance program. Using the program enabled the hospital’s owners – Toombs County Hospital Authority – to cut the interest rate by more than half, saving the hospital $1,541,042 a year in debt-service costs, or more than $30 million over the life of the loan.
The FHA’s Section 242 program provides mortgage insurance for acute care hospitals ranging from large teaching institutions to small rural critical access hospitals. Proceeds from Section 242 loans can be used for a wide range of purposes, including remodeling, expansion, modernization, equipment, acquisitions and refinancing. In the past five years, the 242 program has insured financing for $2.2 billion of hospital projects across the country.
Meadows Regional Medical Center is named after Dr. John M. Meadows, whose son donated 22 acres to build the original facility in 1963. In 2011, a new 194,000-square-foot facility was opened to address the community’s growing medical needs. Today, Meadows Regional offers 64 private patient suites, 20 emergency treatment rooms and six surgical suites, along with a state-of-the-art cardiovascular lab.
“This is an important milestone for Meadows that will enable us to reduce our costs and continue to sustain the operations of an important safety net hospital. We are thankful for HUD and Love Funding for their assistance in helping us serve the residents of a very rural region in southeast Georgia with a range of primary and specialty care services not typically found in smaller communities” said Meadows Regional Medical Center CEO Alan Kent.
For more information, contact Steven Hunt at (678) 595-8238