Facility Supports Health Care Infrastructure, Creates Jobs

HATTIESBURG, MS–Doctors and patients will benefit from a new state-of-the-art facility dedicated to treating bone and joint cases in the Hattiesburg area. The Orthopedic Institute, made possible with New Markets Tax Credits (NMTC) financing from HOPE (Hope Enterprise Corporation/Hope Credit Union), will be a one-stop location for orthopedic care for residents across South Mississippi.

The $30 million construction project includes 30 licensed orthopedic beds, six orthopedic operating rooms, pre-operative and recovery rooms, as well as support services such as physical therapy, laboratory and diagnostic imaging services. With all of these services housed under one roof, this 74,000-square-foot facility offers expanded space, easy access to staff members, and attention to detail that makes recovery easier.

“This new medical facility is the latest example of how the NMTC program is supporting entrepreneurs and community development projects in the region,” said HOPE CEO Bill Bynum. “Since the program’s inception, we have seen the tremendous impact that NMTC funding can have on attracting capital to communities that need it most.”
The Orthopedic Institute will combine the latest technology with highly trained physicians and caring staff to offer services that match the highest levels of orthopedic care delivered across the country. All staff members will be trained to focus on orthopedic patients. These specialized skills and knowledge will facilitate superior patient care, increased safety, quicker recoveries, and enhanced patient satisfaction.

Using some of its tax credit allocation, HOPE made two loans for the clinic’s development. The NMTC component made the funds available at a significantly reduced rate. One of the loans will be forgiven over a seven-year period, further reducing the cost of the facility.

The NMTC funding supports two of HOPE’s key objectives: supporting health care infrastructure development and creating or retaining quality jobs. Low- and moderate-income families often suffer most when local health care options are limited, draining valuable resources to find providers in other areas. Job creation is a critical component for helping the nation recover from a struggling economy, and positions in the health care sector represents a stable career path for employees.

“Having access to quality health care is a key component for building stable communities,” said Bynum. “The clinic will also create jobs that pay good wages. This will allow clinic employees to build assets, provide for their families, and contribute to the economy.”

Congress enacted this federal income tax credit as part of the Community Renewal Tax Relief Act of 2000 to spur new or increased investments into development projects located in low-income communities. Tax credits are awarded by the U.S. Treasury’s CDFI Fund on a competitive basis to Community Development Entities (CDE) like HOPE that have a track record of working in economically distressed areas and that present a viable plan to raise capital and make investments in underserved areas.

HOPE is one of the nation’s leading community development financial institutions and an experienced provider of New Markets Tax Credits (NMTC) to businesses across the Mid South. Since the program’s inception, HOPE has received tax credit allocations totaling $50 million. The organization has leveraged that into more than 70 loans totaling $75 million across Arkansas, Louisiana, Mississippi, and Tennessee.

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HOPE is a regional financial institution, community development intermediary and policy center that provides affordable financial services; leverages private, public and philanthropic resources; and engages in policy analysis in order to fulfill its mission of strengthening communities, building assets, and improving lives in economically distressed parts of the Mid South. Since 1994, HOPE’s efforts have generated over $1.6 billion in financing and benefited more than 120,000 individuals in the Delta, Katrina-affected areas, and other distressed communities throughout Arkansas, Louisiana, Mississippi, and Tennessee.