Experienced Health Care Provider Continues to Expand in Northeast Ohio with Help of NMTCs

Published by Mark O’Meara on Monday, October 8, 2018
Journal cover thumb October 2018

One of Northeast Ohio’s largest nonprofit health systems and primary care providers continues to serve the community, this time with the development of University Hospitals (UH) Rainbow Center for Women & Children in the Midtown neighborhood of Cleveland. 

“This population is important to University Hospitals. We wanted to build the center closer to where our patients live,” said Debra Skriba, vice president, institutional relations & development, UH. “The center is transformative for a neighborhood that suffers from decades of persistent poverty.” 

The 152 year-old health system includes 18 hospitals and 50 ambulatory centers. Its main campus, the nationally ranked UH Cleveland Medical Center, is just 2 miles from this new facility. 
 
“Cleveland has one of the highest infant mortality rates in the country,” said Ryanne Shuey, vice president, manager of new markets tax credit originations at PNC Bank, which provided NMTC equity and allocation to the development. PNC also has a large presence in Cleveland. 

The UH Rainbow Center for Women & Children offers pediatric primary care, women’s health and OB/GYN services. In addition, the 40,000-square-foot, three-story health center provides outpatient pregnancy care, general pediatrics and adolescent medicine, breastfeeding support, integrated mental and behavioral health services, and nutrition education and food access programs. The facility also has dental and vision services, a pharmacy and can connect families with social services. 

Additionally, the center provides ample community and educational space for programs that focus on prevention and total health needs–all housed conveniently under one roof. Located in the heart of the Midtown neighborhood, the center is on a major bus line, making it easy for community members to access. 

“We believe that by transforming the model of care to provide resources for patients and providers at the point of service, we can improve health outcomes,” said Patti DePompei, president, UH Rainbow Babies & Children’s and MacDonald Women’s hospitals. “We’ve built in data-driven measures of success to the work flow of the new center and we look forward to sharing what we learn with other health care organizations. We hope the UH Rainbow Center for Women & Children can be a national model for addressing health disparities by treating the whole patient with individually tailored care and support.”
 
The UH Rainbow Center for Women & Children opened in July. 

Journal October 2018 NMTC Rainbow Center

Image: Courtesy of Matthew Sugerik, UH Rainbow Babies & Children’s Hospital
The University Hospitals Rainbow Center for Women & Children is a 40,000-square-foot, three-story health center in Cleveland that provides outpatient pregnancy care, general pediatrics and adolescent medicine, breastfeeding support, integrated mental and behavioral health services, and nutrition education and food access programs.

Part of a Larger Development 

UH Rainbow Center for Women & Children is part of a larger development in the area and abuts the new Link59 Campus, which features a new, 60,000-square-foot, ground-up building that is home to technology and professional services companies, a 30,000-square-foot adaptive reuse project, and the new Dave’s Midtown Market. 

“This is a great addition to have in our community and [in] Cleveland in general,” said Nathan Wynveen, director of portfolio management at Hemingway Development, which did the preliminary site work and sold the land to UH. “Having an outpatient hospital in a neighborhood that didn’t have a hospital is hugely beneficial. This hospital will serve the entire region and focus on the health of a new generation of Clevelanders.” 

The UH Rainbow Center for Women & Children will partner with Dave’s Midtown Market on a number of healthy food initiatives. There will be a teaching kitchen on-site at Dave’s, which will be used by dietitians from UH Rainbow and other organizations in the community to teach classes focused on the importance of education around proper nutrition and eating habits. Skriba is excited that community members will have convenient access to fresh, healthy foods. 

Financing 

The development of the UH Rainbow Center for Women & Children wouldn’t have been possible without NMTCs. PNC Bank was heavily invested in this development, providing a $7.1 million federal NMTC equity investment, a $650,000 state NMTC equity investment as well as a $5.3 million NMTC allocation. “[Providing greater proportions of allocation] is a strategy that PNC tries to do when projects completely align with our mission,” said Shuey. “The health center will have a compelling impact in a highly distressed neighborhood in Midtown Cleveland.” 

Betsy Figgie, president of Your CFO Resource, the NMTC consultant for UH, was impressed with PNC Bank’s dedication to this development because PNC pre-committed up to $7 million in NMTC allocation before the 2015-2016 NMTC awards were announced. However, the development only needed a $5.3 million allocation from PNC Bank. 

Cleveland Development Advisors (CDA) provided a $10 million federal NMTC allocation and a nearly $2.6 million state NMTC allocation. “University Hospitals has a storied history of providing essential care in Cleveland and their commitment to doing so in the middle of neighborhoods most in need was one CDA is excited to support,” said Yvette Ittu, president of CDA. “CDA always looks to invest its NMTC allocation into these types of catalytic projects that can anchor a community. Having Dave’s and [University Hospitals] on the same site and partnering to deliver health and wellness support to the community made this an easy decision.” 
 
Northeast Ohio Development Fund provided a $6 million federal NMTC allocation. Radhika Reddy, president of Northeast Ohio Development Fund, was impressed with the center’s community impact, “especially for the women and children in this low-income area with no [other] medical services close by.” Reddy said the development will further impact the community through the number of jobs it will create. 

“The new markets tax credit is a dependable source of money,” said Skriba, who added that UH will consider using NMTCs for future developments. 

“I have known University Hospitals for a number of years as a volunteer. And, when they needed guidance on how to assemble a new markets tax credit transaction, they reached out to me and I put together a team,” said Figgie, who was a board member for a small affiliate of the health system. “This was the first time the sponsor has gone through a NMTC transaction.” 

UH also received donations for the development of the UH Rainbow Center for Women & Children. “We have a very generous philanthropic community in Cleveland,” said Skriba. “Many were captivated by the importance of this project–bringing a health center right to the community.” 

“University Hospitals has a strong philanthropic community,” said Figgie. “They stepped up in a big way.”

“Providing much needed medical services in Cleveland’s Midtown neighborhood is an excellent use of the NMTC program. UH Rainbow Center for Women & Children will provide the community with state-of-the-art comprehensive medical care and supportive services,” said Annette Stevenson, partner in the Cleveland office of Novogradac & Company, which provided NMTC consulting and financial modeling for the project. “Not only does the center bring health care to this area of Cleveland, but it brings jobs and economic growth, spurring additional private investment for the area.” 

Journal October 2018 NMTC Rainbow Center Financing