NEWS RELEASE WASHINGTON, D.C.

Local Contact: Amy Mund (720) 544-2906
National Contact: Vicki Ritterling (202) 690-0498

USDA RURAL DEVELOPMENT UNDER SECRETARY ANNOUNCES $26.6 MILLION FOR NEW SALIDA HOSPITAL

     SALIDA, Colo., April 10, 2006--Agriculture Under Secretary for Rural Development Thomas C. Dorr joined Mike Bennett, USDA Rural Development State Director and representatives from the Heart of the Rockies Regional Medical Center (HRRMC) Association for a ceremonial check presentation of $26,620,000 and ground breaking for a new 25 bed critical access care hospital.

     "Accessibility to quality healthcare is an essential need of rural communities," said Dorr. "HRRMC assists in answering the call to the Bush Administration's Critical Access Hospital Initiative by providing rural Americans with access to primary and preventive health care services."

     The new hospital, the first in Salida in over 120 years, will provide health care to the communities of Buena Vista, Poncha Springs, Salida and surrounding rural areas. The facility will allow HRRMC to provide "state-of-the-art" care using advanced medical technology and practices. Twenty of the twenty-five beds will be located in the Medical/Surgical Unit, with the remaining five beds being in the Intensive Care Unit and Labor and Delivery. Once the new facility is completed, the existing hospital will be sold and converted into an assisted living facility.

     "The new medical center will greatly enhance the delivery of health care services in Central Colorado," said Bennett. "This hospital will replace the present facility built in the 1880s and will be located in the northwest part of Salida, allowing easier access and less congestion for patients and visitors."

     Under the Community Facilities Program, USDA Rural Development will provide a $4 million direct loan and a $22.62 million loan guarantee for the hospital. Guaranteed community facilities loans are available to develop essential community facilities in areas and towns of up to 20,000 in population. The hospital will raise an additional $3 million via grants and donations.

     USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. Rural Development provides investment and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at any of Colorado's eight local USDA Rural Development offices or by visiting the web site at http://www.rurdev.usda.gov/co/index.htm.

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