will provide us with the opportunity to expand services and achieve greater efficiencies in delivering patient care.
The total cost for La Red Health Center's, (LRHC) New Ambulatory Health Care Facility is approximately $4,700,000 and to date, LRHC has raised $1,200,000 through grants from private banks and foundations as well from state and federal agencies. In addition, LRHC used an unusual approach to obtain a $3,500,000 financing package by turning to a lesser-known lender called a community development financial institution, which in this case was the Dover-based, National Council on Agricultural Life and Labor Research Fund, Inc, (NCALL) for the short- term construction financing. The United States Department of Agriculture- Rural Development, (USDA) will provide the long-term financing. The building is scheduled to be completed and LRHC to take occupancy during the second quarter of 2012. By expanding its physical capacity, LRHC expects to serve an estimated 20,000 underserved individuals- approximately 10% of the County's overall population.
In support of this effort, LRHC has partnered with the Becker Morgan Group, Inc. for architectural services and Regional Builders for construction management. The direct cost for this project is $4.7 million and it is expected to generate $691K in indirect costs and $1.2 million in induced costs for a total economic impact of $6.6 million.
Overall, in 2011 La Red Health Center will generate an approximate 13 million dollar impact in Sussex County, Delaware through its ongoing operations, and special construction project. Not factored into the impact LRHC has on the local economy is the cost savings passed on to the local health industry by creating a medical home for individuals that keeps Sussex Countians healthy and out of the area hospitals, as well as the expense avoidance associated with patients visiting LRHC instead of inappropriately using the local