News - 2006

Columbus, OH, November 13, 2006 - Red Mortgage Capital, Inc., a mortgage lender that specializes in multifamily housing, seniors, health care and hospital facilities, recently provided a $10,530,000 permanent financing commitment for a 25-bed acute care, Critical Access Hospital ("CAH") located in Jersey Shore, Pennsylvania.

Jersey Shore Hospital ("JSH"), which is celebrating its 100th anniversary this year, is embarking on a $15 million building project consisting of a new, two-story patient care facility and renovations to its existing facility. Groundbreaking is scheduled for November 14. The new addition will provide over 41,000 square feet of patient care space including a new emergency department, diagnostic radiology, surgical suites, private inpatient rooms, and state-of-the-art technology. JSH provides 24/7 emergency services, critical care, inpatient acute and sub-acute care, inpatient and ambulatory surgery, occupational health and rehabilitation, orthopedics and joint replacement, eye surgery, diagnostic radiology and cardiopulmonary services.

JSH's service area covers much of Clinton County and western Lycoming County, located in north-central Pennsylvania, an area with a population of approximately 45,000. The hospital is accredited by the Joint Commission on the Accreditation of Hospitals and is designated as a CAH by the state of Pennsylvania and the Medicare Program. JSH is also one of the founding members of the Susquehanna Valley Rural Health Partnership, which includes two other critical access hospitals and the Williamsport Hospital and Medical Center.

Red Mortgage Capital's permanent financing commitment was made in conjunction with a USDA commitment for loan guarantee and another commitment from USDA for $5million of permanent, direct loan funds under its Rural Development Community Facilities Program, which is designed to promote the development of essential community facilities and foster economic growth in rural areas. Construction financing for JSH is being provided by Sovereign Bank of Williamsport , PA.

Lou Ditzel, President & CEO of Jersey Shore Hospital said, "We are thankful to Red Mortgage Capital for their commitment to our community and for being a strong supporter of our efforts to prepare JSH for the next century. Not only is this project crucial to the Hospital and its mission, it will be of great benefit to our rural health network and the many initiatives being undertaken to improve the health delivery system in central Pennsylvania."

Charles C. Ervin, Managing Director, Red Mortgage Capital, Inc. said,"This transaction demonstrates the type of dedication and collaboration that is needed to rebuild rural healthcare facilities like Jersey Shore Hospital . This project is proceeding due to the vision and tireless efforts of Jersey Shore 's board and management and the commitment of USDA to help the people of north-central Pennsylvania . Red Capital is very happy to have had the opportunity to help pull the project financing together and provide long-term permanent financing for the hospital. What a great 100th birthday present."