|HUD No. 10-105
May 24, 2010
HUD APPROVES $292.5 MILLION FINANCING PLAN TO BUILD STATE-OF-THE-ART HOSPITAL IN EAST NORRITON, PENNSYLVANIA
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today committed to insure a mortgage loan to New Regional Medical Center (NRMC) in East Norriton, Pennsylvania. The $292.5 million loan is made possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
The new facility is the product of a strategic partnership between Albert Einstein Healthcare Network and Montgomery Hospital Medical Center. It will include construction of a new 146-bed, state-of-the-art acute care hospital, including 96 surgical beds, a 22-bed intensive care unit, a 20-bed obstetrical unit, and an eight-bed neonatal intensive care unit. The new structure will expand local access to quality health care and is the first completely new medical center to be built in the southeastern Pennsylvania region, including the city of Philadelphia, in at least a decade, according to the Pennsylvania Department of Health.
"FHA is helping to build state-of-the-art health care facilities like this all across the country," said FHA Commissioner David Stevens. "By helping to make these projects possible, FHA also contributes to the financial well-being of communities by creating jobs and helping to stimulate local economies."
HUD estimates the New Regional Medical Center construction project will support 2,750 full-time jobs and provide an estimated economic stimulus of more than $785 million to the community. Once completed, it is estimated the project will support 450 full-time jobs and provide an annual economic benefit of more than $101 million.
"We are delighted to know that our new hospital project is backed by the faith and credit of the U.S. Government, and we are grateful to the FHA for their support," said Einstein President and CEO Barry Freedman. "Einstein looks forward to the contribution we can make to the local community, both by creating and preserving jobs in a challenging economy and by providing advanced health and wellness services for area residents."
The new facility will offer both inpatient and outpatient services including emergency medicine, cardiology, general medicine, obstetrics/gynecology, general surgery, interventional radiology/vascular/cardiology, oncology, and orthopedics. It will also begin offering services not currently available in its service area. These services include cardiac surgery, advanced electrophysiology, cardiac catheterization, and neonatal intensive care.
By insuring the mortgage loan, FHA is enabling the medical center to obtain lower cost financing that will save an estimated $74 million in interest expense over the life of the loan. Since 1968, FHA has insured 383 mortgages to hospitals throughout the nation, 42 within the past five years.
FHA's Section 242 Mortgage Insurance Program for Hospitals provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of acute care hospitals including major equipment needed to operate the facility. The eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.