New Markets Tax Credits: A Flexible Capital Source and a Change Agent

The U.S. Treasury Department’s New Markets Tax Credit (NMTC) program, created to spark investment in disadvantaged communities, has become a valuable source of flexible capital for healthcare providers and health systems to tackle the immediate needs of both their organizations and communities to affect positive change. NMTC funding has been used for new construction or renovation of facilities including emergency rooms, primary care, mental health and testing sites. It has also funded a host of collaborative partnerships that deliver healthcare, educational and workforce development opportunities, access to healthy food, childcare and other resources tailored to community needs.

As we reimagine our healthcare infrastructure to affect positive change in our communities and to build for the future, the time for bringing flexible capital to implement creative solutions could not be more opportune. There is an increasing consensus among healthcare leaders regarding the significant impact that social determinants have on population health, emphasized by an increasing awareness of health inequities. Now, as leaders focus on a value-based mindset, many organizations are investing in projects, partnerships and programs that address social determinants and health equality in their communities. Healthcare leaders have a unique opportunity to incorporate a value and community-based focus into their capital planning, with the potential to not only drive improved patient outcomes but also economic and social impacts to the communities they serve.

In a whitepaper published on ModernHealthcare.com, we’ll offer an overview of the NMTC program and explore how it has supported impactful projects that serve low-income populations in rural, suburban and urban areas across the U.S.

Executives who read this compelling white paper will learn:

■ How the NMTC program works

■ Why executives and leaders should consider the NMTC program in their capital planning

■ High-level examples of successful projects

New Markets Tax Credit financing provided $10.5 million of $38 million for this highly impactful and efficient community health campus in rural Washington that provides 200,000 patient encounters annually.