Financing Options for Hospital and Health Systems Expansion and Renovation Projects
Renovations and/or expansions to existing facilities can be an ideal option for a hospital when the costs are below that of a replacement facility or the economic, financial or political climate is not conducive for a new construction project. Renovations and expansions can improve revenues by updating existing services as well as adding additional service lines, changing the mix of outpatient and inpatient services, and improving operational efficiencies and patient amenities.
Lancaster Pollard has experience financing expansion and renovation projects with a variety of funding structures, including rated and nonrated tax-exempt bonds, and debt offerings credit-enhanced by commercial or agency options, including the FHA/HUD Sec. 242 program and USDA loan programs. In fact, Lancaster Pollard was the number one FHA Sec. 242 lender from FY 2007 to FY 2011, according to HUD data. And because we have access to the full range of financing options, we can objectively select financing structures to take advantage of lower interest rates and/or more favorable covenants and terms.
Additional information about Lancaster Pollard's renovation and expansion financing options: