Access to Capital HUD 242 August 19, 2003

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Access to Capital - HUD 242August 19, 2003

• Shoshone Medical Center's Experience in Utilizing
  HUD 242 Mortgage Insurance to Finance a
  Replacement Facility
• Presented By
• Gary M. Moore, CEO
• Alan P. Richman, President CEO

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Shoshone Medical CenterKellogg, Idaho

• Critical Access Hospital Designation
• Assess the Condition of the Physical Plant
• - What will it cost to continue to use the
  existing facility?
• - What will it cost to renovate?
• - What will it cost to replace?
• Hospital Board of Directors Sets the Course and
  Builds Community Support
• Market and Demographic Study and Analysis
• Design a Facility Based on Current and Future
  Needs
• Internal Financial Projections and Assumptions,
  Based on Critical Access Reimbursement,
  Determines the Financial Feasibility of a Project
• Research and Identify Potential Financing Options

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Shoshone Medical CenterKellogg, Idaho

• Determine HUD 242 Eligibility
• Structure the Financing
• - Sources Uses Schedule
• - Develop Security Package/Equity Requirement
• - Identify Bridge Loan/Interim Financing Source
• Select the Other Working Group Members
• Begin the HUD 242 Financing Process/Request a
  Pre-Application Meeting with HUD
• Commission a Feasibility Study Start to Prepare
  the HUD 242 Application
• Complete the HUD 242 Application Submit it to
  HUD
• Receipt of HUD Firm Commitment for Mortgage
  Insurance

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Shoshone Medical CenterKellogg, Idaho

• Based on Current Market Conditions, Determine the
  Most Advantageous Financing Structure (Tax-Exempt
  Bonds vs. GNMA Direct Loan)
• Close Loan
• Begin Construction!

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• Gary M. Moore, CEO
• Shoshone Medical Center
• [phone] gmoore_at_shomed.org
• Alan P. Richman, CEO President
• InnoVative Capital, LLC
• [phone], Ext. 101 arichman_at_innovativecapi
  tal.com

01-437920.02