Uniontown Hospital Expansion

Uniontown Hospital is a 224-bed community hospital located 50 miles southeast of Pittsburgh in the City of Uniontown, Fayette County. The Hospital is the County’s largest employer and a lifeline for this economically distressed community, where nearly 1 in 4 residents qualifies for Medical Assistance (MA) and 17 percent live below poverty level. Downsizing and service cuts at nearby hospitals created pressure on Uniontown Hospital, which was already experiencing a significant growth in service volume. Projected growth in the region's uninsured and elderly populations only served to exacerbate the problem. The Hospital's Emergency Department (ED), which was designed to accommodate 40,000 patient visits per year, was treating in excess of 50,000 patients each year - far beyond reasonable capacity. To control staff costs while continuing to provide the highest quality care, the Health System had not undertaken a major capital improvement project in over 20 years. The lack of modern facilities was impacting the Hospital's ability to compete with hospitals in neighboring West Virginia.

Uniontown Hospital hired Delta to implement a public funding strategy for a $44.4 million expansion plan that included construction of a new patient tower, an expanded emergency department, consolidated outpatient services, and a realigned main entrance. Delta worked with hospital management to secure the support of key project stakeholders in seeking funding through the Commonwealth’s Infrastructure and Facilities Improvement Program (IFIP). A key component of Governor Rendell’s Economic Stimulus Package, the IFIP provides annual grants to local issuers of debt (e.g., public authorities) that, in turn, finance eligible infrastructure and facility improvement costs through conventional loans or bond issues. The annual state grant is effectively “reimbursed” by the new state taxes generated by the project.

Uniontown Hospital was awarded an $8.4 million IFIP grant, or $422,000 per year for the next 20 years, to help defray debt service costs associated with the project. This infusion of public funding will help Uniontown Hospital undertake a renovation and expansion project that will allow the Hospital to strengthen existing service lines, modernize facilities, and maintain market share in an increasingly competitive market.