New York state is facing a primary care crisis, culminating after years of underinvestment – studies have shown that the state ranks last in the country in avoidable hospital use and cost.
To address this issue, the Primary Care Development Corporation (PCDC), with support from HSBC Bank, has just announced that it will invest $40 million to develop primary care centers in disadvantaged communities across New York state.
The grants, which will be in the form of low-cost, long-term financing, are part of the New Markets Loan Fund Initiative, funded through the U.S. Department of Treasury’s New Markets Tax Credits (NMTC) Program. The $40 million commitment is the largest NMTC transaction so far that specifically targets primary care.
The fund will help create new primary care facilities, as well as renovate and expand existing centers, for economically distressed New York communities. These facilities will serve more than 110,000 patients each year, and are expected to create approximately 52 permanent jobs and 365 construction jobs.
The facilities will receive long-term financing at below market interest rates, which would generally have not been possible in light of the current credit crunch.
"This partnership is great news for the Bronx and other underserved communities in New York State," said Congressman Jose Serrano, a Democrat serving the Bronx district. Serrano is also chairman of the Financial Services and General Government Appropriations subcommittee, and oversees the NMTC program.
"In this economic downturn, credit is very tight and low-income communities suffer the most," he said. "PCDC’s New Markets Loan Fund represents a big step forward for New York State, by giving health centers much-needed access to capital, which in turn will improve access to care for tens of thousands of New Yorkers."
As many primary care doctors are quitting and medical students are choosing other specialties, primary care "is in crisis" in many of the nation’s communities, the Boston Globe recently reported.