$55M in tax credits goes to primary care

The U.S. Treasury’s Community Development Financial Institutions Fund has awarded the Primary Care Development Corp. $55 million in New Markets Tax Credit allocation. The award will help PCDC continue to invest in primary care in underserved communities throughout the country.

PCDC is one of 76 community development entities to share in $3.5 billion in New Markets Tax Credit money. Awardees were selected from a pool of 263 applicants who requested nearly $20 billion.

“Lack of affordable capital is a major barrier that prevents the development of quality primary care in low-income communities,” Anne Dyjak, PCDC’s managing director for capital investment,” said in a statement.

“We are delighted that the CDFI Fund is continuing to support PCDC through the NMTC program, helping us meet the critical need for capital from community health centers and other safety net healthcare providers,” she added. “We look forward to working with our partners to spur sustainable primary care development throughout the U.S.”

The award follows a $43 million NMTC allocation PCDC received in 2014, which has catalyzed development of community health center projects in a number of underserved communities – often in partnership with other financial institutions.

For instance, PCDC partnered with Capital One and Hope Credit Union to invest $14 million in NMTC allocation in Primary Health Services Center of Monroe, La., which serves one of the 10 poorest communities of its size in the country. The investment enables the center to consolidate and expand its three clinics, integrate medical and behavioral health services and build a new medical clinic so it can provide high quality healthcare to more than 20,000 patients each year.

PCDC is a nonprofit organization dedicated to transforming and expanding primary care in underserved communities to improve health outcomes, reduce healthcare costs and disparities. It provides affordable financing to build and modernize facilities, coaching and training to strengthen care delivery, and advocacy to support policy initiatives that invest in primary care.

It has financed more than 100 primary care projects valued at more than $650 million, creating capacity for 2.6 million annual primary care visits for more than 800,000 patients. This investment has developed or improved 1.2 million square feet of space and created or preserved more than 6,500 jobs in low-income communities, according to the organization.