HUD announces first Section 242 financing for rural hospitals in Colorado and Idaho.

HUD recently announced its first two committments of the FHA Section 242 Hospital Insurance Program for rural access hospitals. The FHA will provide a total of $28.5 million in mortage insurance for the Rio Grande Medical Center in Del Norte, Colorado and the Shoshone Medical Center in Kellogg, Idaho. Until now Section 242 committments have been associated almost exclusively with large, urban hospitals. The rural access program is operated by the Department of HHS as part of the Balanced Budget Act of 1997 to help small, rural hospitals provide acute, nursing and outpatient sercies to rural communities. To qualify, rural hospitals must have 25 or fewer beds, average 96 hours or less per acute care stay, provide emergency and outpatient services and be located 35 miles from the nearest hospital.