RIVERSIDE, Calif., April 28, 2011 /PRNewswire/ -- Parkview Community Hospital's (Parkview) Board of Directors is proud to announce that it has received funding on its $29 million loan through the new U.S. Department of Housing and Urban Development (HUD) Section 242/223(f) refinancing program today. This marks a momentous occasion for the California hospital and its resurgence as a Safety Net provider for Riverside and its neighboring communities. Woody Rucker- Hughes, Chairperson of the Board, said, "This long-term loan will provide a stable and secure financial platform for the hospital. It will enable us to meet our long-term goals of continuing to focus on the health care needs of the community."
Parkview is the first hospital in the United States to refinance debt through the Federal Housing Administration's (FHA) Section 242/223(f) loan insurance program. This program allows hospitals that meet HUD's underwriting criteria to refinance existing debt without project requirements of new construction or renovation components. By allowing hospitals to access lower interest rates, the program reduces healthcare costs and allows hospitals to better serve their communities.
Parkview's FHA-insured loan will have an interest rate of approximately 5%, a huge savings from its previous mortgage interest rate of 20%. In addition, the new loan will provide the hospital with funds to purchase $1.8 million in medical equipment to upgrade the hospital's Neonatal Intensive Care unit.
Parkview is a 193-bed acute care hospital that has served the Riverside area for more than 50 years. It is a non-profit hospital that serves more than 75,000 patients each year including 40,000 in the Emergency Department. With more than 1,000 employees, Parkview is one of the largest employers in Riverside, California, and supports over 2,220 jobs in the community. The hospital has over 400 affiliated physicians on the medical staff.
News contact: Marlene Burnett
SOURCE Parkview Community Hospital