Where:Boulder City, Clark County, Nevada
Problem: Boulder City Hospital needed to rehabilitate its existing facility and add square footage to improve and expand services.
Solution: RCAC provided a $16.3 million construction loan and $2.7 million permanent loan to expand the hospital to meet the needs of its aging local population.
Rural Boulder City, Nevada suffered through the poor economic conditions of the past decade. The community continues to have a high unemployment rate and few job opportunities, which means many young residents leave the area. As a result, the percentage of elderly residents in the city grew rapidly. Currently, nearly 30 percent of its residents are 65 or older; and that demographic change created a need for medical services targeted toward the elderly.
The Nevada State Office of Rural Development approached RCAC to partner in the long term financing of the Boulder City Hospital. RCAC agreed to provide a portion of the permanent financing, $2.7 million, and a $16.3 million construction loan. As a result BCH was able to remodel its existing facility, add space, reopen its surgical program and provide two new inpatient services – geriatric behavioral medicine and acute rehabilitation. These new services were critical to the financial sustainability of the hospital.
The modernized facility is about twice its original size and generated nearly 300 new construction jobs during the 18- month construction period. More importantly, the hospital estimates that the project saved 220 jobs and created 70 new positions through the expansion of services and programs. Today, the facility is significantly improved and is meeting the needs of its elderly local population.
“It is easy to see the strong and positive impact the hospital renovation and expansion has on the community. Our constituents know that we saved jobs, added jobs and, most importantly, increased access to high quality health care to not only Boulder City, but to southern Nevada,” said Tom Maher, chief executive officer, BCH.
RCAC financing was critical to the project. According to an American Hospital Association report, rural hospitals lack of access to capital has a major impact on their ability to modernize their facilities and acquire new technologies.