Financing for healthcare facility revitalization in rural America. Investments are funded by AgStar Rural Capital Network, in collaboration with USDA, community banks and farm credit partners.
What AgStar offers NRHA members?
What Clients Say About AgStar...
A True Partner
“We operate a hospital, so we don’t go out and get financing to build buildings all the time. AgStar guided us from A to Z. They are 100 percent a true partner.”
Brad Anderson, Chief Financial Officer, Community Memorial Hospital
Community Memorial Hospital (CMH) in Cloquet, Minnesota wanted a flexible financing package that included long-term fixed rates to mitigate future risk, as well as providing the ability for community banks to be involved due to their strong support of the facility. AgStar developed a funding package that utilized the USDA Community Facilities Program Guarantee program, as well as their Direct Loan program to achieve the long-term fixed interest rates, and was able to include two of the hospital’s local lenders as well. Community Memorial expanded to offer all inpatient services, including medical/surgical, intensive care and obstetrics. A specialty physician clinic, education and training area, new cafeteria and kitchen, and infusion clinic were also included. Community Memorial expansion meets the healthcare needs of 30,000 community residents it serves.
“Working with the USDA and the federal bureaucracy was something none of us had experience with. AgStar helped us through what would have been a very complicated process had we taken it on ourselves. Their experience and expertise made all the difference.”
Cary Linder, Foundation Executive Director, Hutchinson Area Health Care
Hutchinson Area Health Care (HAHC) in Hutchinson, Minnesota recognized the need for a new senior living facility and increased demand for skilled care. HAHC undertook extensive research and identified a building site near the hospital campus. They bought the land and then turned to the task of finding financing. HAHC pursued traditional, tax-exempt bond financing, but with market turmoil and credit crisis looming over the nation, getting financing was very difficult—even for such a vital project. The developer brought AgStar in to talk about alternative funding solutions for Hutchinson’s Harmony River Living Center. In addition to providing skilled nursing care for short-and long-term residents, Harmony River Living Center has a new 18-unit assisted living wing for seniors with memory care needs.
“AgStar came to our board meeting very organized. They worked with us at a level we could understand. But, mainly, it was their energy and enthusiasm for visualizing the project as a reality. They showed us that it was possible, that there was money available to accomplish what we wanted to do—even on a larger scale than we could have envisioned ourselves.”
Sue Harpin, Hospital Board Member, Essentia Northern Pines Hospital
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Essentia Northern Pines Hospital in Aurora, Minnesota needed to improve or replace an off-campus, aging clinic, however the hospital’s board of directors felt trapped by their current financial commitments. AgStar Rural Capital Network worked with community hospital leaders to provide financing that made the dream of a full service medical campus a reality. The project delivered a new 13,000 square foot medical clinic attached to the existing hospital and nursing home. Improvements included renovations in the hospital, including the purchase of new crucial care equipment. Today, Essentia Northern Pines is a 16-bed critical access hospital, offering a broad range of inpatient and outpatient care—including a growing number of surgeries and an emergency room staffed 24/7.