June 15, 2022 – To increase access to health care services in medically underserved communities, Bank of America has committed $40 million in low-cost, long-term capital to finance the development and expansion of community health care centers and other primary care facilities across the United States. Bank of America will partner with non-profit community development financial institutions (CDFIs) to distribute the funding. In addition, Bank of America will provide $100,000 in philanthropic grants to help with CDFI operational costs and help spark the creation of new health centers.
Primary care providers are anchors in their communities, providing both essential services and employment. Primary care – focused on the whole person, integrated with mental health and substance use services – leads to better health for people and their communities, and reduces the burden of chronic disease. The value is evident: An increase of just one primary care physician for every 10,000 people leads to 5.5% fewer hospital visits, 11% fewer emergency department visits, 7% fewer surgeries, and is associated with a 51.5 day increase in life expectancy.1,2
Bank of America will provide low-cost capital to several CDFI partners, including Primary Care Development Corporation (PCDC). To date, PCDC has financed more than $1.34 billion in primary care projects through direct investment and leverage. Such investments support facility acquisition and renovation, program and practice transformation, operating support, service line growth, and technology acquisition. PCDC strengthens service delivery through training and technical assistance and advocates for meaningful policy change to improve primary care financing, reimbursement, service delivery, and workforce training and pipeline development. Over the last 30 years, through a combination of financing and technical assistance, the organization has created and preserved more than 18,000 jobs while impacting millions of people.
While further locations are to be determined, additional CDFIs receiving capital as part of this initiative include the following CDFI partners:
- Capital Impact Partners delivers strategic financing, social innovation programs, impact investing, and capacity building that creates social change and delivers financial impact nationwide. Over 3.4 million patients are receiving health care at 570 community health centers financed by Capital Impact around the country.
- The Reinvestment Fund is a Philadelphia-based CDFI that has provided more than $2.4 billion in financing to strengthen neighborhoods, scale social enterprises, and build resilient communities. Reinvestment Fund’s recent health care-related financings include Riverland Medical Center, in rural Louisiana; Faith Medical Center in Nashville, Tennessee; and the redevelopment of a West Baltimore historic building into the Center for Health Care and Healthy Living.
- With over $2.3 billion invested nationally, Enterprise Community Loan Fund (ECLF) provides flexible capital to organizations across the U.S. focused on revitalizing their communities. ECLF’s investments help build and preserve affordable homes and neighborhood resources and facilities that residents need most, including schools, health centers, fresh food stores and other critical community assets.
Of the $40 million commitment, $10 million will go to additional CDFIs to encourage others to enter the space of financing the development of primary care facilities.