Five primary care facilities that operate in underserved communities in Brooklyn, Manhattan and Queens are expected to save approximately $3.8 million through a tax-exempt bond issue to refinance nearly $30 million of loans.
"We are delighted that these health centers can use their savings to expand important services, reinvest in their facilities, employ more members of their communities and strengthen their financial status," said Tom Manning, director of capital financing for the Primary Care Development Corporation, which handled the refinancing. "All of these health centers are anchors in their communities and building financial strength is critical to fulfilling their mission to provide high-quality primary care."
The refinanced bonds carry an interest rate of 3.27 percent over a 15-year remaining term and were issued through a program conducted by PCDC with the City of New York and the State Dormitory Authority, with the city providing credit support.
Refinancing on bands originally issued in 1996 and 1997 will assist the Callen-Lorde Community Health Center in New York, the Joseph P. Addabbo Family Health Center in Queens, Medisys East New York in Brooklyn, Medisys Merrick in Queens and Settlement Health in New York.
"We have a tremendous responsibility to control the costs of healthcare and, simultaneously, to continuously improve quality. These savings enhance our ability to provide affordable, patient-centered care." said Wendy Stark, executive director of the Callen-Lorde Community Health Center, which provides primary care targeted to lesbian, gay, bisexual and transgender communities as well as people living with HIV/AIDS.
A report released last week by PCDC and the New York State Health Foundation showed evidence of broad financial distress in the primary care safety net. With federal healthcare reform providing opportunities to double the amount of medical care provided at community health centers, the report includes recommendations to strengthen and expand existing health centers and services.
Established in 1996, the PCDC's tax-exempt bond program has financed $65.3 million in bonds to fund $78 million in project costs throughout the state. This investment has created or preserved 555 permanent jobs and 580 construction jobs and improved 187,000 square feet of space.