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There are several options for financing hospital construction projects. Banks offer direct loans that are collateralized by specific assets of the hospital. Bank loans, government-assisted programs, and private equity are also viable sources of funding.
Hospital buildings may be publicly or privately owned and can be general, district, critical access, medical office, specialized, teaching, or clinics. Hospital construction is complex and expensive, with procurement and installation of medical equipment.
Private hospital financing can be an option for hospital construction, but it can be a complex process. Private equity firms are one potential source of funding. Alternatively, hospital construction projects can be funded through private placement bonds, which are sold to a limited number of accredited investors.
However, private hospital funding typically requires higher rates of return than other funding options and may come with stricter terms and conditions. Working with reliable consultants and planners is crucial for navigating the private financing process and avoiding common mistakes that can negatively impact the success of the project.
Reliable clinical consultants and space/equipment planners can help ensure project success. Globix Funding offers financing for various types of hospital buildings, including acquisition, construction, rehabilitation, and refinancing projects. We offer flexible structuring and lower issuance costs but have higher debt service requirements and interest rates.
Globix Funding provides HUD, Agency and Conduit financing for senior housing, assisted living, CCRC and nursing home owners and operators nationwide. Many programs offer 75-90% financing, non-recourse provisions and low fixed rates for 35-40 years. Our programs provide financing for acquisitions, refinance, new construction, bridge, and rehab projects.