Finance Fund’s New Markets Tax Credit Investment Supports New Behavioral and Mental Health Wing of East Ohio Hospital

East Ohio Hospital, also known as East Ohio Regional Hospital, is a 330,000 square foot, 140 bed medical facility located in Martins Ferry, Ohio. New Markets Tax Credit (NMTC) financing made possible the expansion of the facility to include a renovated 30,100 square foot behavioral and mental health wing. This renovation will provide behavioral and mental health services for 10,000 patient visits annually, 3,800 of which annual visits are expected to be by unique individuals. Approximately 70% of the patients to the wing are anticipated to be low-income persons.

Finance Fund provided $15 million of federal NMTC allocation and $2,560,000 of Ohio NMTC allocation to the project, which is owned and operated by a minority-owned business. Capital One provided and additional $2,000,000 of federal NMTC allocation to the project. The new wing will include an 11,250 square foot, 46-bed in-patient unit; an 11,620 square foot outpatient unit with treatment space, offices, and group therapy rooms; and, a 7,230 square foot, 24-bed residential rehab unit. The project will increase East Ohio Hospital’s medical services to include substance abuse and addiction treatment and recovery, psychiatry, and neuro spine surgery.

“The New Market Tax Credits Financing has allowed East Ohio Hospital to start an outpatient program for mental health and substance abuse for both adults and adolescents. The financing will also allow the hospital to offer residential rehab and additional mental health services for the residents of the Ohio Valley and Appalachia where access is limited.”

– Dr. John Johnson, East Ohio Hospital Owner

In keeping with goals identified by Ohio Department of Mental Health and Addiction Services, East Ohio Hospital will integrate behavioral health services through continuum care and evidence-based prevention, access to treatment, and recovery services to address substance and opioid use disorders. Clinical treatment will include outpatient, inpatient detox, day treatment, partial hospitalization, 30-day residential rehabilitation, and telemedicine. East Ohio Hospital is working with Belmont College to create work force classrooms within walking distance of the hospital for students entering the medical field that do not require a two or four- year degree.

The project area is a federally designated Medically Underserved Area as well as a Mental Health-Health Professional Shortage Area. East Ohio Hospital has a 2-year plan to address the primary care physician shortage by creating a residency program with a focus on primary care and mental health. Local residents experience a poverty rate of 35.4% according to U.S. Census Tract data, and an unemployment rate of 20.9%, which is 2.52 times the national unemployment rate.

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