Patrick County is a designated Medically Underserved Area (MUA) and home to one of seven Critical Access Hospitals in Virginia. And while these designations label the facility as an essential foundation for community health in a rural area, this hospital has faced possible closure in the past and was hard-pressed to keep current with service offerings. The medical facility opened in 1962, originally operating under the name of the R. J. Reynolds-Patrick County Memorial Hospital. An addition was completed in 1968, but no major renovations have occurred since then.
“Virginia Community Capital is the kind of company that lives up to its mission statement. Their business decisions are truly centered on creating positive change in communities. VCC has been an invaluable partner for Pioneer Health Services, helping us ensure steadily improving healthcare in Patrick County. VCC was our original lender for the acquisition of the brick and mortar of our hospital in Stuart, Virginia. And now, through their leadership and vast knowledge of today’s lending tools, we have refinanced our original loan using a New Markets Tax Credit (NMTC) loan. Through their expertise and guidance, we are now in a position to renovate our hospital and provide a superior healthcare experience for the community we serve.”
Joseph S. McNulty III, Founder and CEO, Pioneer Health Services
Pioneer Health Services, Inc., based in Mississippi, assumed control of the facility in 2009. At that time, only the emergency department was fully operational. VCC provided critical acquisition financing accompanied by a grant from the Tobacco Commission. Pioneer hired over 100 people and returned the operations to a fully functioning hospital with primary care, behavioral health, diagnostics, labs, basic surgeries, and an emergency room.
Pioneer is now investing more in the community—with a comprehensive modernization of the dated facility and an expansion, which is expected to add much-needed orthopedics, dialysis, and children’s dental surgery. A second VCC loan using New Markets Tax Credits (NMTC) is providing valuable refinancing that allows for the upgrade. Five new jobs will be created as a result of the project.
“Obviously the health of the hospitals financials has a direct effect on the quality of care being provided to the community. Virginia Community Capital has given us the resources to be a better hospital because their expertise and direction makes us better financially. By recommending and obtaining an NMTC loan over an SBA or USDA loan, we are now situated to save a significant amount of money over the life of the loan. This money can now be put toward the growth and expansion of care for our patients.”
Julie Geiger, CPA, Chief Financial Officer, Pioneer Health Services
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