|HUD No. 22-083
HUD Public Affairs
April 28, 2022
FEDERAL HOUSING ADMINISTRATION COMPLETES REFINANCE TRANSACTION WITH MEDICAL UNIVERSITY OF SOUTH CAROLINA (MUSC) TO SUPPORT ACCESS TO ACUTE CARE FOR SOUTH CAROLINA COMMUNITIES
$79.7 million FHA-insured refinance transaction supports continued access to quality healthcare at three hospitals in Providence and Camden, SC
WASHINGTON - The Federal Housing Administration (FHA) announced that its Office of Hospital Facilities has completed a refinance transaction on April 7, 2022 for the Medical University Hospital Authority (MUHA) of South Carolina. The transaction, which closed on April 7, 2022, provides FHA insurance on a $79.7 refinance transaction through Armadale Capital Health Care Mortgage Corporation under FHA’s Section 223(f) program and facilitates continued access to quality healthcare for South Carolinians in Providence and Camden, SC. Doing business as Medical University of South Carolina (MUSC) Health, the organization is the second largest hospital system in South Carolina with 2,226 licensed beds throughout its 14 facilities.
The transaction is a refinance of MUSC Health short-term debt which will reduce costs for MUSC Health related to Providence Hospital Downtown and Providence Hospital Northeast in Providence, SC, and Kershaw Health in Camden, SC, which MUSC Health acquired in 2021. Combined, the three hospitals are projected to serve over 12,000 patients in 2022.
Providence Health Downtown is a 258-bed acute care hospital and Providence Hospital Northeast is a 74-bed acute care hospital with a free-standing emergency room. Kershaw Health includes a 119-bed acute care hospital, with 20 licensed beds specifically for geriatric psychiatry.
MUSC Health hospital facilities have been in the FHA Section 242 Mortgage Insurance for Hospital Facilities portfolio since 2004 with a $401 million FHA-insured mortgage used for the construction of the seven-story Ashley River Tower diagnostic center in Charleston, SC. In subsequent years, FHA has insured three additional mortgages for MUSC Health, including a $316 million FHA-insured mortgage in 2016 for the Shawn Jenkins Children’s Hospital in Charleston, SC.
About FHA’s Section 242/223(f) Mortgage Insurance for Hospital Facilities Program
FHA’s Office of Hospital Facilities (OHF) manages the Section 242 program, which provides mortgage insurance for acute care hospital facilities ranging from large teaching institutions to small rural critical access hospitals. FHA’s Section 242/223(f) program provides options for hospitals wishing to refinance existing loans without new construction or major rehabilitation. As of February 2022, FHA has active insurance on 88 mortgages for hospital facilities across the country with a total unpaid principal balance of $6.5 billion.