KANSAS CITY, Kan. (May 4, 2006) – A new medical office building and clinic financed by Lancaster Pollard provides for future expansion and will help a Missouri hospital continue to attract physicians.
Golden Valley Memorial Hospital in Clinton is replacing a small building across the street with an adjacent three-story clinic and office building by using $10 million in tax-exempt bonds. The addition is part of the 84-bed hospital’s strong and successful physician recruiting effort. The financing also provides nearly $1 million to equip the building with new medical technology.
“The building that they’re in right now is just not an attractive setting,” said Gordon Glass, Golden Valley’s chief financial officer. “This will get a lot better efficiency among the employees, and it’s going to be light and bright.”
Lancaster Pollard’s comprehensive credit assessment and understanding of community hospital finances enabled Golden Valley to choose from several financing options after a local bank was unable to fulfill its commitment to fund the 63,000-square-foot addition.
“Because construction already had started on the addition, the hospital needed an expeditious solution with the best possible interest rate,” said Michael T. Ashley, Lancaster Pollard assistant vice president. Lancaster Pollard explained Golden Valley’s status as a sole community provider and a rural referral center, articulating the reimbursement benefits provided by these programs to credit enhancement providers and investors. The hospital was able to secure a letter of credit that allows it to borrow at an “AA/A-1+” rating.
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