MONROE, La and NEW YORK, N.Y., October 14, 2014 – Primary Care Development Corporation (PCDC) and Capital One have invested $14.0 million in New Markets Tax Credit allocation (NMTCs) into Louisiana-based Primary Health Services Center (PHSC) to expand its integrated primary care services to meet the needs of nearly 20,000 patients in Northeast Louisiana.
“This is a dream come true,” said Catherine Tonore, CEO of PHSC. “PCDC and Capital One have made a major investment in our community that will enable PHSC to expand its facilities to help meet the healthcare needs of our patients. This partnership allows us to complete the expansion of our health center and invest more money in our services to our population.”
As a 501(c)(3) nonprofit organization and certified Patient Centered Medical Home incorporated in 1997, PHSC operates four adjacent facilities totaling 61,000 square feet on Desiard Street and Betin Avenue and two mobile vans in the City of Monroe, Louisiana. PHSC is the only Federally Qualified Health Center and certified Affordable Care Act Enrollment Center located in Ouachita Parish and is the only provider of services to homeless and public housing populations in northeastern Louisiana.
PHSC plays this critically important role in the community by offering core primary medical services, OBGYN, pediatric and behavioral health services, including substance abuse counseling and short term therapy, access to dental services, and referrals of chronically mentally ill patients to the local community behavioral health network of mental health providers. Nearly 98% of PHSC’s patients are at or below 200% of the poverty line, and nearly one-third are uninsured. PHSC is located in a Medically Underserved Area; a Health Professional Shortage Area, and a Renewal Community.
“We are so delighted that one of our largest New Markets Tax Credit financings is helping Northeast Louisiana’s citizens access quality healthcare in a modern facility that provides the respect and dignity they deserve,” said Ronda Kotelchuck, CEO of PCDC. “Our goal is to deploy capital where it can have the greatest impact, and together with Capital One and other partners, we’ve done just that with the PHSC expansion.”
The NMTC financing enables PHSC to complete construction and renovation of a new medical clinic, which began in 2012, and provides long-term financing so the health center can provide healthcare to over 20,000 underserved patients each year. Since beginning the expansion, PHSC has seen a 42% increase in patients and is expecting continued growth. At capacity, PHSC is expected to deliver over 80,000 patient visits across the four facilities. The project is also creating and retaining a significant number of livable wage jobs in this distressed community.
PCDC, a nonprofit Community Development Financial Institution (CDFI) dedicated to financing primary care expansion in underserved communities, provided $9.5 million of the $14.0 million in New Markets Tax Credits to support PHCS’s expansion. Capital One, which acted as NMTC investor and NMTC lender, provided the remaining $4.5 million in NMTC allocation. Along with NMTCs provided by PCDC and Capital One, Hope Federal Credit Union is providing a portion of the debt financing and Capital Peak Partners helped negotiate the transaction. The federal NMTC Program, established in 2000, attracts investment capital to low-income communities by permitting investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called community development entities (CDEs).
“This partnership between Capital One and PCDC to finance PHSC’s expansion is creating jobs and improving the lives of thousands of residents in Northeast Louisiana,” said John Chamberlain, Senior Vice President in Capital One’s New Markets Group. “We are pleased to support PHSC in its efforts to meet the needs of their community.”
“PHSC is a model of what quality community-based healthcare should look like. PCDC and Capital One’s commitment to PHSC and the Louisiana Primary Care Association shows that Louisiana health centers aren’t just open for business, they’re open for investment,” said Jonathan Chapman, Executive Director of the Louisiana Primary Care Association. “We welcome responsible partners like PCDC and Capital One who have the capital and know-how to finance Louisiana health centers’ growth today, and what we all know will be even greater growth in the coming years.”
About Primary Health Services Center
Primary Health Services Center (PHSC) is a private, 501(c)(3) nonprofit organization and certified Patient Centered Medical Home incorporated in 1997 by local citizens. As a Federally Qualified Health Center (FQHC) PHSC is involved in community based primary healthcare, offering core primary medical services, OBGYN, pediatric and behavioral health services, including substance abuse counseling and short term therapy, access to dental services, and referrals of chronically mentally ill patients to the local community behavioral health network of mental health providers.
About Primary Care Development Corporation
The Primary Care Development Corporation (PCDC) is a nationally recognized nonprofit whose mission is to expand access to primary care in underserved communities. PCDC currently achieves this mission through three programs: capital financing to build and expand primary care infrastructure; technical assistance to help primary care practices improve their performance and operate more efficiently; and public advocacy to support policies that sustain and expand primary care. PCDC began in 1993 in New York, and now operates nationally, providing capital financing and technical assistance in states and communities throughout the US, and playing an increasingly important role in shaping national policy related to primary care.
About Capital One
Capital One is a diversified bank that offers a broad array of financial products and services to consumers, small businesses and commercial clients. A Fortune 500 company, Capital One has one of the most widely recognized brands in America. As one of the nation’s top 10 largest banks based on deposits, Capital One serves banking customers through branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia.