October 16, 2018
UTICA, NY – On Tuesday, September 25, 2018, Mohawk Valley Health System (MVHS) closed on the necessary financing to fund the new, regional healthcare campus project above the $300 million grant from the New York State Department of Health (NYSDOH). The loan is financed through Barclays, a multinational investment bank and financial services company.
In April, MVHS received approval for its Certificate of Need (CON) application for the construction of the new healthcare campus from the NYSDOH Public Health and Health Planning Council. The approval came with some contingencies which are common for a project of this magnitude. One of the contingencies was securing financing for the remainder of the project. The closing on the financing has now satisfied that contingency.
“We are extremely pleased to finalize this important part of the project,” said Scott H. Perra, FACHE, president/CEO of MVHS. “Securing this financing not only gives us the financial security to complete this transformational project in downtown Utica, but it satisfies one of the CON contingencies which is vital to moving the project forward.”
MVHS recently signed the Phase I Grants contract with NYSDOH which allows MVHS to begin utilizing a portion of the $300 million grant. This means MVHS can begin submitting reimbursement requests for expenses related to the new hospital that have already been incurred. MVHS has already spent nearly $8 million on the project in areas such as building design and consultant fees.
The cost projection for the regional healthcare campus is estimated to be $480 million for a 373-bed, 672,000-square-foot facility. In April 2017, MVHS was awarded the $300 million Health Care Facility Transformation grant to create an integrated healthcare delivery system in Oneida County. The remaining $180 million will come from MVHS capital, this financing and fundraising.