Capital Fund is expanding its impact lending portfolio with a new loan to Eastport Health Care, Inc. (EHC), a critical provider of essential healthcare services along Maine’s northeast coast. Serving patients across two locations in Washington County, EHC delivers comprehensive medical, dental, and behavioral healthcare through innovative and affordable care models.

In September, Capital Fund closed a $1.5 million, 5-year loan to pay off existing lines of credit and replenish cash reserves. This support comes at a pivotal time for the health center. EHC has been facing cash flow challenges after opening a second $1 million line of credit—collateralized by the organization’s investments - while simultaneously managing unexpected provider departures, delays in Medicaid reimbursements, and the financial strain of a cyber-attack.

To strengthen its financial position, EHC has implemented a board-approved remediation plan aimed at restoring profitability. Key strategies include:

• Collaborating with their software vendor to resolve billing issues
• Expanding chronic care management services
• Reducing expenses, generating nearly $150,000 in savings
• Pausing hiring for non-essential roles
• Reallocating the facilities director's time so a portion of his salary can be charged to a Congressionally Directed Spending grant tied to EHC’s upcoming Eastport construction project
• Increasing their MaineCare rate and raising their medical, dental, and behavioral health fee schedule by an average of 10%, boosting patient revenue by more than $950,000

Eastport Health Care remains committed to providing high-quality, comprehensive, and accessible healthcare to the communities it serves.