SAN ANTONIO , TX -Mohr Health LLC has obtained a $10.9 million loan from Siemens Financial Services Inc. for a 40-bed rehabilitation hospital here. The Dallas-based company will develop and own the $14.5-million facility, Warm Springs Rehabilitation Hospital of Westover Hills, while Post Acute Medical LLC will operate it.
The seven-year loan from Siemens includes financing for the land acquisition, construction of the 50,000-square-foot facility and permanent mortgage, according to Wynn Searle, principal and partner with Mohr Health. Formerly known as CCD Healthcare, Mohr Health develops and acquires healthcare real estate.
Searle tells GlobeSt.com that Mohr Health has been working with Post Acute Medical to assist in the operator’s expansion in San Antonio . “We did a market analysis of the metro area, and we determined Westover Hills would be the right spot for a new rehab hospital,” he explains. “We sourced the land, and with Post Acute Medical’s approval, we bought the land.”
Located at 10323 State Highway 151, the facility was designed by Dallas-based Curtis Group Architects. Mohr Health recently began construction on the property, and Searle says it will be ready for occupancy in March 2012. It will be licensed as a remote facility of Warm Springs Rehabilitation Hospital of San Antonio, which also is operated by Post Acute Medical.
“We started design and construction on the facility without a loan,” Searle says, adding that Mohr Health evaluated several potential lenders before deciding on Siemens. “I had a previous relationship with Siemens when the company provided equipment financing for another project I handled.”
Real estate loans are part of Siemen’s recent expansion of its healthcare financing capabilities. "Access to capital for healthcare providers continues to be generally challenging, even as we see strong indications of improvement in the economy," says Ted Drake, senior vice president and general manager of healthcare finance for Iselin, NJ-based Siemens Financial Services.
Drake points out that the American College of Healthcare Executives recently published results of a survey where 542 hospital CEO's indicated that in 2010, financial challenges ranked as their top concern, with healthcare reform implementation coming in a distant second.
“In this environment, many vital construction projects are sitting on the drawing board,” Drake says. “We're in a position to help get them moving forward again.”
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