September 3, 2008
Capital Funding Available to Smaller Health Care Organizations in California’s Rural and Underserved Communities
UnitedHealth Group (NYSE: UNH) and its PacifiCare of California subsidiary are providing easier access to capital financing for smaller health care organizations that provide vital health care services to underserved, low-income and underinsured communities statewide.
The Capital Access Small Issuance Program - part of the California Health Care Investment Program, a 20-year, $200 million commitment to provide access to capital financing - is designed for smaller health care entities such as safety-net hospitals and clinics, public hospitals, and other qualified health care providers seeking capital between $1 million and $5 million.
Capital funding may be used for purposes that improve access to and delivery of health care services. Examples include:
-- expanding and upgrading physical and technology infrastructures;
-- improving electronic health care technology including medical records;
-- purchasing new and/or additional services and equipment;
-- building, renovating, modernizing or expanding health care facilities;
-- supporting the coordinated care model in California;
-- and re-funding higher-cost debt obligations.
The Capital Access Small Issuance Program offers tax-exempt bond financing at interest rates often lower than those of conventional loans, maturity and term structure design flexibility, and a dedicated team of underwriters and program investment professionals that help streamline the overall financing process. Issuance costs are subsidized by UnitedHealth Group and PacifiCare of California through the current Grant Program.
"Smaller health care entities provide vital services to the underserved and underinsured in California's rural and urban communities and deserve access to the same types of financing utilized by larger organizations," said Bob Oberrender, UnitedHealth Group's senior vice president and treasurer. "UnitedHealth Group's Capital Access Small Issuance Program has a dedicated team of investment and underwriting professionals to help streamline the financing process so smaller health organizations can remain focused on their primary goal - to provide access to quality, affordable health care to Californians who need it most."
"UnitedHealth Group is committed to investing in a healthier California," said David Hansen, CEO, Pacific Region of UnitedHealthcare. "We do this by offering products and services that address affordability, access and quality needs for all Californians, and by supporting community health organizations that will help improve the health care delivery system for everyone, especially underserved populations."
Organizations interested in financing through the Capital Access Small Issuance Program may contact Steven Henry at [email protected] Investments are based on program and credit qualifications; program qualification does not guarantee program participation.
UnitedHealth Group offers health benefits, including commercial and Medicare health plans to more than 3 million Californians, and partners with about 50,000 physicians across the state.
About UnitedHealth Group
UnitedHealth Group is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, OptumHealth, Ingenix, and Prescription Solutions. Through its family of businesses, UnitedHealth Group serves more than 70 million individuals nationwide.