AMS Health Care Mortgage Corporation (AMS) was founded to serve the capital needs of hospitals nationwide. The AMS Team has originated over $2.8 billion in FHA insured loans. We act solely as an FHA lender, obtaining insurance commitments for our healthcare borrowers.
INDIANA – September 22, 2016 – AMS Health Care Mortgage Corporation, Piper Jaffray & Co. and JLL Capital Markets jointly announced today the closing and funding of a $266,600,300 FHA/GNMA-insured mortgage loan for Union Hospital in Terre Haute, Indiana.
Founded in 1892, Union Health provides care for the 277,657 residents of West Central Indiana and Eastern Illinois. The regional healthcare system is comprised of the flagship Union Hospital (Terre Haute), a 347-bed acute care hospital; Union Hospital Clinton, a 25bed critical access hospital; and two rural health clinics (Clay City, Indiana and Marshall, Illinois), employing a total of 2,878 physicians and staff. The loan, insured under HUD’s Section 242 Mortgage Insurance for Hospitals program, significantly reduces the system’s annual debt service, saving Union Health and its patients approximately $148,000,000 over the life of the loan.
The team members assisting Union Health in obtaining the HUD loan commitment through successful execution have significant healthcare lending and finance experience. AMS is an FHA-approved mortgage lender that specializes in obtaining financing for hospitals and is consistently a leading originating banker for Section 242 loans. Piper Jaffray, a leading investment bank specializing in healthcare finance, worked closely with AMS in structuring the transaction, assisting Union Health in defeasing its existing tax-exempt debt and placing the GNMA securities with end investors. JLL, working closely with AMS and Piper Jaffray is the FHA Mortgagee of Record and will service the loan over its 25-year term.
Executive vice preident and chief financial officer Wayne Hutson, of Union Hospital, stated, “This refinancing positions Union Health well to continue its mission for the future in serving the healthcare needs of the people in the communities we are committed to serve. HUD’s Section 242 Mortgage Insurance program allows Union Health to realize meaningful savings, deleverage the organization and enhance the financial health of our organization. For our patients, this means we can continue to offer cost-effective care and expand our program offerings for the health and well-being of the people in the communities we serve, now and in the future.”
AMS and Piper Jaffray worked jointly from the inception of the engagement and partnered closely with the HUD and hospital teams to procure the FHA mortgage insurance commitment. Joseph Spiak, president of AMS, Romy McCarthy, managing director at Piper and Matthew O’Grady, principal at Piper Jaffray, jointly stated, “It has been an honor and privilege to serve Union Health and its communities. The flexible terms of the program and the broad distribution of securities to end investors resulted in one of the lowest interest rates achieved for a healthcare system participating in HUD Hospital Facilities program.”
Brian Kelleher, international director at JLL stated, “We were pleased to team with Union Health, AMS and Piper Jaffray in successfully completing this transaction. JLL’s healthcare team, offering a full suite of healthcare services, including loan servicing, looks forward to its long-term relationship with Union Hospital.”
National Healthcare CFO Summit 2013 Masterclass
Joseph A. Spiak, AMS Health Care Mortgage Corporation
The National Healthcare CFO Summit is the premium forum bringing senior level finance executives and solution providers together. As an invitation-only event, taking place behind closed doors, the Summit offers an intimate environment for a focused discussion of key new drivers shaping the healthcare industry.
The following presentation was given at the University of Florida, Gainesville for members of the Master’s Degree Program in Health Care Administration.
- The origins of capital finance for US not-for-profit hospitals
- The growth Years: from the simple to the sublimely complex
- The Rating Game: assessing hospital credits
- Jacksonville Market: microcosm of America
- Final Word / reflection
Joseph A. Spiak, President
AMS Health Care Mortgage Corporation
JACKSONVILLE, FL and NEW ORLEANS, LA – More than seven years after the devastation of Hurricane Katrina resulted in the shuttering of the former Pendleton Methodist Hospital, AMS Health Care Mortgage Corporation (“AMS”), a HUD-licensed mortgage lender, has secured an FHA 242 Hospital Mortgage Insurance Commitment from the U.S. Department of Housing and Urban Development (“HUD”), to restore acute care services to the 80,000 residents of New Orleans East. The $97.6 million loan to the Parish Hospital Service District of the Parish of Orleans – District “A” (“HSD”), a political subdivision of the State of Louisiana, will be used to construct a full service state-of-the-art 80 bed hospital offering inpatient and outpatient care. The loan, backed by the full faith and credit of the U.S. Treasury, will provide an exceptionally low fixed interest rate and amortize over a period of 25 years after completion of construction. AMS, HUD, and the entire project team worked diligently to secure HUD’s commitment prior to September 30, 2012, thus avoiding a mandated insurance premium increase that would have cost the HSD an additional $3.6 million over the life of the loan.
“This is an important milestone that could not have been achieved without the commitment, collaboration and hard work of the board and local legislators,” said Mayor Mitch Landrieu. “We are now one very important step closer to achieving our goal. The strength of the U.S. Government is now behind the financing of the New Orleans East Hospital and we will continue to move forward to bring this full service hospital to the New Orleans East community.”
AMS, an FHA approved mortgage lender, specializes in obtaining financing for hospitals and select residential care facilities, and is consistently the leading FHA 242 originating banker for new FHA 242 loans.