A Quarterly Resource Digest from Capital Link Spring 2019
Of Note...
Capital Planning: Determining Need, Measuring Impact, and Building Capacity
Statewide Capital Needs Assessments
With so many new legislators, many PCAs and HCCNs have an opportunity to proactively measure and communicate the capital plans and needs of their member centers for potential state and local funding. Building off the national needs assessment in conjunction with NACHC and the 18 other NCAs, Capital Link conducts needs assessments via electronic survey tools to help PCAs determine capital project plans, investment needs, sources of capital, projected funding gaps, and growth readiness to expand facilities to meet projected market need. We also ask member centers to provide details such as whether the project is to renovate or expand their existing facilities, open a new site, or augment their physical space to implement new services to meet patient/community needs. This information is then analyzed and PCAs use the resulting comprehensive report to help members identify potential funding sources and begin to strategize health center growth on a statewide basis.
Capital Project Value and Impact Report
Another tool used by PCAs and HCCNs to specifically communicate the value of growth plans is Capital Link’s customized Capital Project Value & Impact report. This report illustrates the compelling story of how health centers embarking on a capital project provide significant economic revitalization in their communities, including temporary impacts during construction and ongoing impacts post construction due to the increase in capacity. Using IMPLAN economic modeling software, the report illustrates economic impact, jobs, and tax revenues in an infographic format. Learn more here: http://caplink.org/services/analyze/value-impact-analyses.
Planning, Financing, and Completing a Capital Project: Capacity-Building Programs
Many PCAs and HCCNs supporting a number of member health centers anticipating the need to complete a capital project find capacity-building trainings are essential to help health centers maneuver the process. The first step is to ensure the centers understand their market environment and opportunities with a feasibility assessment that includes a Market Snapshot, Financial and Operational Assessment, and Debt Capacity Analysis. After assessing project feasibility, in-person and webinar trainings assist centers in planning, financing, and completing a capital project. Key topics include: Evaluating Your Market to Determine Your Operating Model and Right-Size Your Project; Organizational and Financial Readiness; Developing a Project Concept and Determining Project Feasibility; Design and Development: Assembling and Managing a Project Team; Evaluating your Financing Options and Fundraising Plans, and Implementation: Managing a Project and Lessons Learned.
Capital Planning and Financing Technical Assistance
Capital Link has 20 years of experience providing one-on-one coaching and technical assistance on a variety of topics, performed either on-site or remotely for FQHCs. This technical assistance is designed to bring customized expertise to health centers in order to successfully implement planning techniques and secure project funding. Also ask us about our peer group learning to advance the capital planning of health centers.
Capital Financing Resources – New Markets Tax Credits and HRSA’s Loan Guarantee Program
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund recently reported that the announcement for the calendar year (CY) 2018 New Markets Tax Credit (NMTC) Program allocations will occur this spring. Community development entities (CDEs) who are awarded these allocations will be actively seeking near-term health center expansion or renovation projects to finance. If your member health centers need additional funding for a project, with a portion as equity, NMTC financing could be the answer!
HRSA’s Health Center Facilities Loan Guarantee Program (LGP) is also an important resource for health centers, providing Health Center Program awardees a guarantee of up to 80% of the financing needed to support construction, renovation, and modernization of medical facilities. Updates to LGP application instructions and review processes are underway. Capital Link is assisting with the preparation of new guidance materials, which will be available this spring. Capital Link will keep PCAs and HCCNs informed – stay tuned for upcoming webinars as well as in-person sessions at the NACHC P&I. Learn more here: http://caplink.org/events/events.
For more information about Capital Link’s capital planning and financing services or to sign up a health center for an in-person meeting at the NACHC P&I, please contact Mark Lurtz, Director of Partnership Development, at 636-233-1515 or This email address is being protected from spambots. You need JavaScript enabled to view it..