Kentucky Highlands’ client Grace Health received a Silver Award recently from the International Economic Development Council at its Excellence in Economic Development Awards program in Denver. More than 550 nominations were received across 23 categories in September.
Grace Health was recognized in the category of Innovative Federal Funding for its women’s center and medical mall for unlocking $800 million from the little-known U.S. Department of Health and Human Services guarantee program. “This recognition is not just an honor for me personally, but a testament to the hard work, dedication and passion that the Grace Health team brings to our mission every day,” said Michael Stanley, CEO of Grace Health. “This award highlights our commitment to enhancing community health through strategic resource allocation and innovative solutions. It reflects our collective efforts to improve access to care, promote wellness and ensure that our community thrives. Together, we have turned challenges into opportunities, and this recognition reinforces the impact we are making in the lives of those we serve.
“I want to express my gratitude to each member of our team. Our team’s tireless work and unwavering commitment are the foundation of our success.”
Opened in 2023, the $30 million Grace Heath Medical Campus is an 88,000 sq. ft. state-of-the-art integrated medical services facility that offers medical, dental, mental health and substance abuse treatment services in a former vacant K-mart store. About 53% of Grace Health’s target population lives at or below 200% of the federal poverty level.
Grace Health’s entrepreneurial leadership has consistently and strategically filled care gaps with new offices and expanded services by stacking federal programs. This project combined New Markets Tax Credits, a Human Resource Services Agency (HRSA) 330 grant, a novel HRSA Health Center Facility Loan Guarantee, and a bank loan to fund leasehold improvements and equipment.
Grace Health recognized healthcare continuum gaps and applied the experience gained in 2020 renovating an 18,880 sq. ft. bowling alley into a women’s and pre-natal care center to the Medical Campus project. Grace Health’s Women’s Center was the nation’s first user of the HRSA Loan Guarantee program.
KHIC has financed Grace Health projects since 2009 — beginning with startup financing. We advised Grace on various federal funding packages and how to unlock the federal guaranteed resources. KHIC also manages an ARC POWER grant that covers 50% of continuing education tuition for over 250 employees Grace Health’s many locations. As a result, the Grace Health Medical Campus project invested more than $30 million in renovations and improvements, creating 80 new healthcare and 144 construction jobs. The Medical Campus employs 147 full-time employees serving more than 3,000 patients weekly, offering primary care, pediatric care, behavioral health, dental, diagnostic, X-rays and labs, and pharmacy services.
Financing tools unlocked by the Women’s Center project facilitated Grace Health’s phenomenal growth in the following years. Patient growth at its eight clinic locations and 34 school-based clinics soared from 26,734 in 2022 to 42,838 and 183,169 patient encounters through December 2023. Grace Health now serves 23.4% of the six-county population.
So why did Grace receive an economic development award, and why is KHIC involved? Because the care it provides improves lives and health. It also is good for economic development:
- The economic impacts of these projects exceed $32 million of capital investment, a $32.6 million payroll buttressing persistent poverty counties, and initiating the use of a new nationwide financing tool used 30 times.
- Economic developers face a talent crisis daily and know that vibrant communities and economies depend upon a healthy and skilled population. Federally qualified health clinics such as Grace expand access to high-quality and affordable health care, especially in rural lower-income areas where economic development projects are needed.
“The Grace Health Medical Campus project … demonstrates how to stack various federal funds to spur community reinvestment through adaptive reuse, reduce lender risk, induce private investment, create jobs, and enhance employee skills. Grace Health’s mission focus and partnership with KHIC spurred a radical revamping of a federal program that had locked up tens of millions of dollars for years,” the Grace Health award nomination stated.