Where: Oregon House, California
Problem: Community healthcare center needed an operating loan to pay off existing short-term debt and bring accounts payable current
Solution: RCAC provided a loan to help the clinic meet operating expenses and become self-sustaining
Sierra Family Medical Clinic (SFMC) incurred significant expenses when it opened a satellite clinic in Oregon House, Calif., and implemented a new electronic health records system. The organization used loans from local supporters, credit cards and its available cash to cover some of these expenses.
RCAC loaned the clinic $500,000 to repay existing short-term debt, pay off capital equipment leases, credit card debt and reduce accounts payable. The loan allowed the clinic to bring all accounts current and spread the organization’s debt obligations over a longer term to reduce its monthly debt service burden and improve cash flow. The RCAC loan reduced the organization’s annual debt obligation by approximately $34,000.
At the time of the loan application, SFMC was losing a substantial amount of money each year and the organization’s long-term viability seemed in doubt. SFMC serves rural Nevada County, Calif. The clinic provides quality integrated primary health, dental and behavioral health care to area residents. If the clinic closed, area residents would lack critical access to a health facility and care providers.
“RCAC’s loan programs over the years have played a major part in our abiltiy to provide continuous health care to a medically underserved, widespread rural community. It has been a pleasure to work with RCAC,” said Steve Weber, CEO, Sierra Family Medical Clinc. “Josh Griff, in particular, has provided a wealth of much needed advice, expertise, and support for our clinic. Bottom line is that Sierra Family Medical Clinic would not have survived without the help of RCAC and Josh Griff.”
The loan from RCAC helped the clinic remain in business. SFMC provides quality health care to area residents and continues to work to improve operations.