PB Community Impact Fund provided $6,000,000 of federal New Market Tax Credit allocation to Ascension DePaul Services (DePaul) to finance the construction, equipping, and initial working capital needs of two Federally Qualified Healthcare Centers (FQHCs) serving predominantly low-income persons in New Orleans, LA. The new medical facilities provide primary care, behavioral health, pediatrics, pharmacy services, urgent care, and outpatient diagnostic imaging and laboratory services regardless of a patient’s insurance status or ability to pay. 

DePaul pursued the project in response to inefficiency in medical service delivery to low-income persons and residents in the New Orleans Area. DePaul noted that although the percentage of uninsured individuals in New Orleans has dropped from 19% to 9%, there hasn't been a corresponding enhancement in the health outcomes of the most vulnerable residents of the New Orleans Metropolitan Area, which is primarily attributable to a lack of healthcare clinics accessible uninsured and government insured individuals. 

DePaul has provided a range of services to the Orleans Parish community for two centuries. DePaul currently operates 11 FQHCs as DePaul Community Health Centers, offering an array of primary and preventive services, optometry, dental, pharmacy, and behavioral health. DePaul’s primary goal is to enhance the health and welfare of the community by offering healthcare and outreach services that prioritize health literacy and access to healthcare for economically disadvantaged communities and populations. 

Evidencing the effectiveness of DePaul’s methods, they have been recognized by HRSA as a National Quality Leader, Health Center Quality Leader, Access Enhancer, Value Enhancer, and Health Disparities Reducer. Additionally, the affiliate has been recognized by the National Committee for Quality Assurance as a Recognized Practice, meaning that the model of care utilized puts patients at the forefront and where continuous quality improvement is a priority.

The project had undergone a lengthy planning and development process prior to PB Community Impact Fund providing an allocation of federal New Market Tax Credits. During that time, the project faced cost escalation that DePaul could not bridge with market sources due to being a nonprofit health system that receives reimbursement rates substantially lower rate than healthcare facilities serving affluent populations. Thus, DePaul could not bridge this gap with market debt, and contributing additional equity was not feasible due to having to maintain 12-18 months of working capital to operate the facility due to the time it takes to receive the permits needed to receive reimbursement from Medicaid. PB Community Impact Fund’s New Market Tax Credit Allocation bridged this financing gap and enabled the project to move forward without having to reduce the Project in scope.