Montana Capital Assistance Program
The purpose of the Montana Capital Assistance Program ("MCAP") is to assist Critical Access Hospitals (CAH), other small rural hospitals (<50 beds), or other eligible health care facilities with the development of a Capital Improvement Plan (CIP) that validates or justifies proposed capital expenditures. The Montana Facility Finance Authority provides funding for this program which is administered by the Montana Health Research and Education Foundation, the 501 (c)(3) organization of MHA, an Association of Montana Health Care Providers.
MCAP services available through the Foundation are designed to assist a facility in developing a CIP for presentation to various lenders, including the Authority, for financing. The Authority has financing programs tailored for specific facilities based upon their creditworthiness and the nature of their capital improvements.
The following hospitals and health care facilities are eligible to apply for and receive MCAP assistance:
- Montana hospitals that have been certified as a Critical Access Hospital (CAH)
- Montana hospitals located in a rural area of Montana with less than 50 licensed hospital beds
- Health care clinics located in a rural area of Montana with no hospital services and that are located at least 25 miles from a licensed hospital
- Must show financial need for grant assistance (excess revenues over expenses of less than $1,000,000 in the three years prior to application)
Prior to submission of the MCAP Site Application, the applicant's governing body must have formally approved pursuing a Capital Improvement Plan either by resolution or motion.
A CIP is used by a hospital to establish infrastructure priorities and to examine funding options for renovations and improvements. MCAP provides technical assistance support in four areas – Scope of Service Review, Facility Master Plan, Capital Financing Plan and Legal Assistance. Approved technical assistance projects must be completed within 12 months of MCAP award.
Each eligible hospital or health care facility may apply for up to $15,000 in MCAP funding for assistance with Scope of Service Review, Facility Master Plan, Capital Financing Plan, and/or Legal Assistance. Approved applications require a 20% cash match from the facility. MCAP is a reimbursement program. After the project has been completed and all pertinent invoices have been paid by the facility, MCAP will reimburse the facility 80% of the costs of the project, up to a maximum of $15,000. Once the maximum award is reached, eligible facilities may not reapply for MCAP funding for five years. Due to limited funds under this program ($60,000 each fiscal year, July 1-June 30) the MFFA reserves the right to deny applications if sufficient need is not shown. Technical assistance is provided through consultants selected by the facility and approved by the Foundation.
An eligible hospital interested in obtaining technical assistance through MCAP should obtain a Site Application by writing, calling or e-mailing Victoria Cech, Foundation Director; Montana Health Research and Education Foundation; P.O. Box 5119; Helena, MT 59604; phone: 406-457-8015; email@example.com.