PATTEN, Maine —- The U.S. Department of Agriculture Rural Development announced Wednesday that it plans to make a substantial loan in partnership with a local bank to build a new medical facility in the community.
The $3 million community facility guaranteed loan to Katahdin Valley Health Center will be made in concert with local lender Bangor Savings Bank, according to a written statement from Millinocket-based KVHC.
“Construction of this new space in Patten will result in new administrative space and expanded medical services, ensuring our Penobscot and Aroostook County residents have access to the health care services that they need without having to travel great distances for much-needed care,” Virginia Manuel, USDA rural development state director, said in a statement Wednesday.
The new, 15,0000 square-foot building will be constructed at 529 South Patten Road. It will contain space for current and expanded administrative and IT functions, according to Manuel.
The project will allow KVHC to expand podiatry, optometry and telemedicine services at its existing Patten facility. It also will provide staff meeting rooms.
KVHC offers comprehensive primary health care services to people of all ages, regardless of ability to pay. Such federally qualified health centers receive enhanced reimbursement from Medicare and Medicaid, among other benefits. The facilities must serve an underserved area or population, offer a sliding fee scale, provide comprehensive services and have a quality assurance program and a governing board of directors, according to the U.S. Department of Health and Human Services.
An official at the Patten town office said Wednesday evening that the project is separate from the town and will not receive any municipal funding.
Katahdin Valley Health Center maintains five clinical sites in Patten, Ashland, Houlton, Island Falls and Millinocket, serving 45 towns, nine plantations, and two townships.
According to USDA Rural Development, it has invested $11.6 million in KVHC and its health care facilities in northern Maine since 2009.