The ELEAH Medical Center is a 20-bed hospital in west-central Minnesota. The primary source of care for a predominantly elderly population in rural Minnesota, ELEAH serves the communities of Elbow Lake, Evansville, Ashby and Hoffman.

In most rural communities, Medicare reimbursements to hospitals are considerably less than other locations, which impacts a facility’s ability to buy equipment, make capital improvements, and pay practitioners. In 2006, ELEAH made the decision to become a Critical Access Hospital, which would increase the level of Medicare reimbursement to cost plus one percent. An unintended result of this decision was a three-month delay in reimbursement due to difficulties in converting the billing and payment systems.

While ELEAH had an ongoing relationship with a local bank, the urgent need to make payroll was the impetus for contacting Nonprofits Assistance Fund. The lending staff worked with ELEAH’s banker to understand the bank’s loan policy and their reluctance to expand the credit line during the hospital’s transition in payment systems and software. Cash flow had become a problem and the MPC was able to leverage a $200,000 loan with another loan fund to provide $400,000 in crucial working capital for payroll and accounts payable. The favorable interest rate offered through the MPC was a key factor in making the decision.

Mary Rapp, chief systems director, described ELEAH’s experience with Nonprofits Assistance Fund, “Excellent; they were wonderful to work with, understood our situation and went out of their way to accommodate us.” In her estimation, the rural elderly population has few options, in terms of transportation, family or providers. The MPC plays a critical role in supporting the rural health safety net.