Monday, November 21, 2016

Four Capital Link Readiness Program Participants Awarded Healthy Futures Fund Planning Grants

Capital Link would like to congratulate Avenue Community Development Corporation with Legacy Community Health, Blackstone Valley Community Health Care, Esperanza Health Centers, and First Choice Community Healthcare for being awarded Healthy Futures Fund (HFF) planning grants provided by The Kresge Foundation and Local Initiatives Support Corporation (LISC). The health centers were selected for their ability to demonstrate plans for innovative, groundbreaking capital projects (described in the box below) that involve unique collaborations with community partners to expand access to health care while also addressing at least one other critical community need, such as affordable housing, access to healthy food, job training, schools, elder care, and other community wellness projects.

Prior to receiving the grants, all four health centers participated in a free HFF Readiness Program, offered by Capital Link and sponsored by LISC and Kresge. Capital Link provided program participants, a group of 10 centers selected through a competitive application process, with technical assistance to advance their capital project plans and prepare for additional funding. A HFF partner, Capital Link developedthe Readiness Program based on our 18 years of planning and development experience in support of FQHCs nationwide.

A $200 million initiative formed by the LISC, Morgan Stanley, and Kresge, HFF utilizes New Markets Tax Credit and loan capital to improve community health by expanding healthcare access and addressing social determinants of health. Read more here.





New Markets Tax Credit Program Allocation Awards Announced

On November 17th, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund announced the awardees for the combined 2015-6 round of New Markets Tax Credit (NMTC) allocations. The awards, which were increased to an historic high of over $7 billion, are aimed at revitalizing low-income communities and increasing economic opportunity nationwide. The 120 Community Development Entities (CDEs) that received these awards are actively seeking projects to finance. This is great news given that many CDEs are interested in providing financing for community health center expansion and renovation projects. For health centers needing additional funding for a project, NMTC could be the answer.

NMTC financing is a critical source of low-cost capital and equity for health center facility projects—often subsidizing project costs by 20% to 25%. In order for health centers to obtain credits with a CDE, they must demonstrate a high level of project readiness and be able to communicate the merits of their projects to CDEs with allocation. Furthermore, the process of structuring and closing an NMTC transaction is complicated and the terms, benefits, and fees offered to borrowers vary widely. 

Capital Link has extensive knowledge of the NMTC financing process and strong connections with virtually every CDE interested in working with health centers. Capital Link can provide assistance with the complex process of completing a NMTC transaction. We’ve also helped many health centers with combining NMTC financing with HRSA capital grants—an excellent option, especially for projects of $5 million or more. Our lending affiliate, Community Health Center Capital Fund, can provide leverage loans to complete the NMTC financing package, as needed.

Of the nearly $1 billion in financing obtained by health centers through the NMTC program, approximately 60% was raised with Capital Link and/or Capital Fund assistance.

For help in determining whether NMTC financing could be a good fit for your health center, please contact us here.

To learn more about the NMTC program and how it works, click here to access Capital Link’s three NMTC publications and here to access a recording of the recent webinar, Financing Health Center Projects with New Markets Tax Credits.

Wednesday, September 28, 2016

New Resource on New Markets Tax Credit Program Extension

Until recently, the New Markets Tax Credit (NMTC) Program was one of several tax credit programs that required annual approval and appropriation through the federal budget process. In December 2015, the situation changed when Congress approved the program for five more years (2015-2019) at an annual appropriation of $3.5 billion. While the program is still not permanent, this extension provides a welcome degree of certainty to the industry. Health centers with capital project plans will have the time to find and secure a site in a qualifying census tract and, if necessary, conduct a multi-year capital campaign with reasonable confidence that the credits will be available when it is ready to begin building.

Our latest resource publication, Spotlight on Capital Resources: New Markets Tax Credit Program Extension, is designed to help health centers better understand the extension and its implications. The third in a series of NMTC Program resources published by Capital Link, this resource also describes the steps necessary for preparing to utilize NMTCs for your capital project (including a discussion on new constraints on the use of the “one-day loan” structure) and the feasibility of using a “developer fee” in the transaction to increase investment in your project.

To access this new resource, please click here.


To help health centers take advantage of this opportunity, we will also be hosting a webinar, Financing Health Center Projects with New Markets Tax Credits, on Thursday, October 13, 2016, from 2-3 pm ET. This work session will acquaint participants with the benefits provided by using NMTC, how to obtain them, and how to structure and close transactions. We will discuss some near-term opportunities arising from the historically large 2015-2016 allocation round. Register by clicking here

Monday, August 1, 2016

Using Predictive Analytics to Drive Health Center Decision-Making

Using data and technology, organizations can now move beyond simply tracking the past to anticipate the future through the use of predictive analytics, technology that learns from experience [data] to predict the future behavior of individuals in order to drive better decisions. Predictive analytics is now becoming more applicable to health care, and will eventually become essential for health centers to improve patient care, reduce costs, and negotiate favorable contracts with payers.

Health centers can utilize predictive analytics in a multitude of ways, furthering its consideration and implementation of patient engagement, patient compliance, chronic disease management, regulatory compliance, avoidable deaths, hospital readmissions, public health, waste and abuse, and health outcomes. And this is only the beginning. Predictive analytics is in its infancy within health care, and the exponential pace of technological advancements will identify additional uses and benefits we have yet to consider.


Capital Link and the National Association for Community Health Centers (NACHC) have just released, Predictive Analytics: An Overview for Community Health Centers. The purpose of this publication is to:
  • Define predictive analytics
  • Provide an overview of its history and development
  • Address the data and resources needed to predict a patient’s future behavior
  • Identify how a health center can begin utilizing it
  • Include specific examples of how it has been successfully used
  • Clarify health centers’ understanding and expectations of predictive analytics

 Access this publication at no cost here and at MyNACHC.  


Wednesday, July 20, 2016

New Resources to Support Sustainable Patient-Centered Care

Health centers that have made the decision to obtain certification as a Patient-Centered Medical Home (PCMH) seek to improve quality, outcomes, patient and staff satisfaction, and to prepare for new reimbursement methodologies. However, this endeavor comes with challenges. Capital Link announces the release of two new resources for health centers that support a patient-centered, team-based model of primary care delivery. These resources, developed with support from the Health Resources and Services Administration, address the issues health centers face in creating and sustaining an organizational culture and facility design that support a PCMH and provide strategies for success.



Developing an Organizational Culture that Sustains the Patient-Centered Medical Home: Lessons Learned examines the cultural challenges and successes health centers face in transforming to this new model of primary care delivery, offering considerations for the patient, family, and staff experience and flexible organizational structures to support team-based care delivery. 

Click here to access this resource. 




Creating a Place for Care: Fostering Alignment and Eliminating Barriers in the Patient-Centered Medical Home
 
provides health centers with insight on how to respond to and reflect the unique needs and preferences of the patients they serve in order to align their facility design with their process of care, and the people they support. 

Click here to access this resource. 




Friday, June 10, 2016

Capital Link article on Investing in Health Centers Featured in OCC Publication

An article by Peg Underhill, Director of Marketing, Communications, and Development at Capital Link, is featured in this month’s issue of Community Developments Investments, a newsletter distributed by the Office of the Comptroller of the Currency (OCC) at the U.S. Department of the Treasury. “Investing in Expanding Health Centers” highlights the importance of finding new ways to support health center growth so that they may fulfill their crucial role in serving the newly insured and remaining uninsured populations.

Click here to read the article on OCC's website.

Wednesday, May 4, 2016

New Reports Examine the Financial and Operational Trends of California Health Centers

Capital Link announces the release of an updated statewide financial and operational profile and an analysis of the financial sustainability of rural health centers in Northeastern California. These resources, sponsored by Blue Shield of California Foundation, highlight data trends in an effort to identify opportunities to ensure the financial sustainability of community health centers. With millions of new patients gaining insurance and the changing nature of the healthcare landscape, providing analyses that bolster the success of health centers is critical.

California Community Health Centers: Financial & Operational Performance Analysis, 2011-2014 updates Capital Link’s statewide, multi-year financial and operational profile.

Analysis of the Financial Sustainability of Rural Health Centers in Northeastern California sheds light on the unique challenges confronting frontier and rural health centers and offers ideas for strengthening operations.

Click here for a free download of the Financial & Operational Performance Analysis.

Click here for a free download the Analysis of the Financial Sustainability of Rural Health Centers in Northeastern California.

Over our long history of working with health centers, Capital Link has amassed a database of financial and operational information to develop field-building resources on the factors affecting health center performance, impact, and growth. For more information, visit www.caplink.org.