The existing hospital was constructed in 1969 and is nearing the end of its useful life. It is not well-suited for today’s volume of outpatient activity and does not allow implementation of new inpatient technology and services. The replacement hospital will be a 71,158 square-foot facility housing 15 acute beds with a retail pharmacy and an attached outpatient center.It will contain areas for imaging, laboratory, dietary, pharmacy, physical therapy, respiratory therapy and support departments"
FHA is helping to build state-of-the-art health care facilities all across the country," said FHA Commissioner David Stevens. "By lowering the cost of credit, FHA will allow Baraga County Memorial Hospital to use more of its resources to provide quality medical care."
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing, saving an estimated $43.8 million in interest expense over the life of the loan.Since 2003, HUD has issued commitments to 19 different critical access hospitals all across the United States.
HUD estimates this construction project will support 103 full-time jobs and provide an estimated economic stimulus of $70.5 million to the community. Once completed, it is estimated the project will provide an annual economic benefit of approximately $2.4 million.
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 is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
