The existing facility was built in 1964 and is need of replacement. Its age limits the scope of additional infrastructure improvements that can be made to the current structure and is therefore one of the only hospitals of its size that still uses semi-private rooms regularly. Management and the Board have studied these deficiencies and considered many ways to remedy them, including building a replacement facility at a new site or renovating and expanding at the existing one. It was ultimately decided that a replacement facility at a new site would best address the current issues and would most effectively serve the citizens of the County. The hospital has been in operation since 1964 and continued to expand both their medicare dependant hospital. Medicare dependant hospitals are more vulnerable to inadequate medicare payments. Congress established a special payment provision to
buttress these hospitals. Also, the model does not take into account that GNCU is a nationwide lender and penalizes the borrower again. The primary benefit of MDH status is eligibility for payments based on hospital-specific payment rates. Under Medicare’s Inpatient Prospective Payment System (IPPS), hospitals with MDH status receive payments based on the federal rate or hospital-specific rate, whichever is greater. If the hospital-specific rate is greater, the MDH is paid the federal rate plus 75 percent of the difference between the hospital-specific rate and federal rate. Hospitals with MDH status are also exempt from the 12 percent disproportionate share hospital (DSH) payment adjustment cap applicable to most other rural hospitals. It should be noted that the hospital is an affiliate of the University of Alabama Health System, giving the hospital access to a larger referral network, or preferred provider network.
| Loan ID | 0152 |
| DSCR | 0.3 |
| LTV | 40.08 |
| Note Rate | 3.98 |
| Property Location | AL |
| NAICS | 62211 |
| Guaranty Type | USDA Community Facilities Program |
| Loan Term | 15 yrs |
| Rate type | Fixed |
| Note date | 10/17/21 |
| Maturity date | 17/10/2036 |
| Participation Availability Amount | $0 |
| Minimum Participation Amount | $250,000 |
| Original Loan Amount | $51,185,000 |
| Full Loan Documentation | Link |
| Inquire | Inquire |