LISC Closes First HRSA-Guaranteed Loan to Help Long Beach FQHC Expand, Better Serve Low-Income Residents
In trying to keep up with the growing health care needs of the community in Long Beach, Calif., Community Medical Wellness Center grew its patient load by more than 150 percent between 2019 and 2021. LISC provided a $7 million loan so the federally qualified health center could acquire its headquarter location, accommodate more patients and expand its mental health services.
Long Beach is the second largest city in Los Angeles County with balmy weather, 28 miles of coastline and one of the most diverse populations in California, with the largest Cambodian population outside of Southeast Asia.
Less known are the city’s health care challenges. Nearly two-thirds of the city’s low-income residents can not access primary care or culturally appropriate services. There is a huge lack of providers in LA County willing to accept uninsured or low-income individuals. The LA County health system has a history of challenges providing timely access to care; wait times can be several months to see specialists, putting those in need of quality care at risk of an illness developing into something more critical.
Community Medical Wellness Center (CMWC) has been working to meet this need in Long Beach since 2015. As a Federally Qualified Health Center (FQHC), CMWC provides preventative and specialty care to residents, no matter their insurance or income status. FQHCs receive funding from the state and federal government, and low-income residents pay on a sliding scale, so no medical care is ever out of reach due to cost. CMWC is the only FQHC in the service area that caters to the Cambodian community by providing healthcare from linguistically and culturally competent healthcare providers and staff.
CMWC is also continuously committed to an integrated care model comprised of primary care, dental care, and behavioral health along with addressing an individual’s social determinants of health. CMWC aims to provide regular preventative care before a crisis to keep patients healthier overall.
With this approach, CMWC grew its patient load by more than 150 percent between 2019 and 2021 and found it needed additional space to adequately accommodate the increase of patients and additional providers and support staff.
CMWC approached a commercial bank to finance its expansion and was turned down due to the perceived risk of the project. But LISC was able to look at the deal differently. With CMWC’s proven track record of providing quality healthcare and wraparound services to low-income residents, LISC was able to provide a $7 million loan so CMWC could purchase its existing space rather than rent and expand so that it could serve more people. The site is integral to its target patient population as the property is centrally located in Cambodia town.
CMWC had already invested over $1 million in significant tenant improvements. With the LISC loan, CMWC can also continue to improve operations, converting four suites into mental health offices to better serve current and future patients. The renovation also includes taking care of deferred maintenance and replacing the aging HVAC system.
The loan is partially backed by the Health Resources and Service Administration (HRSA) Loan Guarantee Program, which guarantees up to 80 percent of the loan and costs. “The HRSA guarantee is a critical component of this project that allowed LISC to provide more flexible loan terms, and we are glad to leverage it to provide a high level of care to a broader portion of Long Beach residents,” said Yan Jiang, healthcare underwriter who worked closely on this deal. To date, HRSA has issued 35 guarantees to support $174 million in total health care construction and renovation loans. This is LISC’s first FQHC deal using the HRSA guarantee.
Currently, CMWC sees more than 60,000 patient visits each year. Once renovations are complete, it will expand its staff and have the capacity for 90,000 visits each year. Connie Max, LISC’s Executive Vice President of Lending, adds, “LISC is excited to support this project and continue expanding our work to Federally Qualified Health Centers who are providing high quality medical care to the country’s most vulnerable residents.”