HEFA Invests $33 Million In Boston Medical Center Project

in Health & Medicine, News Releases, School of Medicine
May 21st, 2008

Contact: Gina M. Digravio, 617-638-8491 | gina.digravio@bmc.org

Boston Medical Center is constructing a new ambulatory care building with the assistance of $33 million in New Markets Tax Credits from HEFA, the Massachusetts Health and Educational Facilities Authority.

New Markets Tax Credits are a federally funded program designed to encourage economic development in low income communities. HEFA was the only Massachusetts recipient of tax credits in 2007, with a $66 million allocation.
“As the project proceeds, we are excited to witness the impact of HEFA’s tax credit investment on the community surrounding the Boston Medical Center,” stated HEFA spokesperson Liam Sullivan.

“The $33 million tax credits from HEFA will provide the Boston Medical Center with $7.8 million in project equity,” stated Boston Medical Center Chief Financial Officer Ronald Bartlett. “HEFA is one of four entities providing tax credits and enabling this important project to proceed. Boston Medical Center will benefit from a total of $70 million in tax credits.”

“This project will allow Boston Medical Center to provide care to many more patients, regardless of their ability to pay, while creating new permanent jobs and hundreds of construction jobs,” said Governor Deval Patrick.

“Boston Medical Center provides crucial care for so many of the City’s residents, especially those who often cannot afford treatment,” said Boston Mayor Thomas M. Menino. “The addition of a new ambulatory care building will allow Boston Medical Center to continue to be a strong resource for our City and a respected institution throughout New England.”

Total project cost of the new ambulatory care building is estimated at $189 million. Boston Medical Center expects to issue tax-exempt bonds through HEFA later this year to complete project financing.

The New Ambulatory Building will provide ambulatory care services in a state-of-the-art facility and allow for future growth. This new building will house clinical services that are currently located at the Doctors Office Building and will allow the consolidation of similar services currently provided at other outpatient locations. The steel-frame 9-story building will create 245,000 square feet of space, located at the corner of East Concord and Albany Streets in Boston’s South End. Prior to construction of the New Ambulatory Building, the structure at 91 East Concord Street must be demolished. Construction of the New Ambulatory Care building will begin as soon as the demolition is complete and will take approximately 30 months.

HEFA is a public authority which provides low-cost funds to nonprofit organizations in the fields of health care, higher education, science, culture and the arts. HEFA is one of the largest issuers of tax-exempt bonds in the country and last year provided $1.6 billion in financing for building projects, equipment, and other important capital needs. HEFA is fully self-funded and receives no taxpayer dollars. HEFA was formed by the Massachusetts Legislature in 1968, and its sole mission is to strengthen the important not-for-profit sector. For more information, visit www.mhefa.org.

Boston Medical Center is a private, not-for-profit, 582-licensed bed, academic medical center located in Boston’s historic South End. The hospital is the primary teaching
affiliate for Boston University School of Medicine. Emphasizing community-based care, Boston Medical Center, with its mission to provide consistently accessible health services to all, is the largest safety net hospital in New England. Boston Medical Center provides a full spectrum of pediatric and adult care services, from primary to family medicine to advanced specialty care. With the largest 24-hour Level I trauma center in New England, the Emergency Department had more than 126,039 visits last year.

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