Pineville Community Hospital restructures debt and creates a geriatric psychiatric unit; 326 jobs saved and 12 new ones created
KHIC worked with First State Financial and the hospital to restructure the hospital’s existing debt into a $3.1 million Business and Industry Guaranteed Loan from the U.S. Department of Agriculture, which allowed the bank to provide private working capital through a $3 million line of credit from First State, according to the release.
“The $3.1 million USDA loan guarantee is important to the Pineville community in many ways: It provides residents access to quality health care, supports the employment of 326 employees and allowed for the creation of 12 additional jobs,” Tom Fern, Kentucky director for USDA Rural Development, said in the release. “In a time when the region has seen a significant loss of employment, these existing and new jobs being created by Pineville Community Hospital are critical.”
In addition to restructuring its existing debt, the hospital used some of the funds to convert an unused labor-and-deliver wing into a 12-bed geriatric psychiatric unit and used other funds for repairs.
“Research showed this type of service was not being offered within 30-mile radius, which affects more than 38,000 residents,” hospital CEO Stace Holland said in the release.
U.S. Rep. Hal Rogers said in the release. “I commend the board of directors for not only diligently working to protect the jobs at this facility, but for having the vision to expand health care in an area under-served for mental-health concerns.”