As Financial Advisor to Livingston Hospital, a 25-bed Critical Access Hospital, InnoVative Capital, LLC, announces the successful execution of a $78.8 million financing that includes a $73.8 million Construction Loan and a $5 million capital contribution from Livingston. All proceeds will be used to fund Livingston's long-needed hospital modernization project. The Construction Loan is secured by a take-out long-term funding commitment from the U.S. Department of Agriculture through the issuance of its 35-year Community Facility Direct Loan at a capped maximum fixed rate of 4.875%.
SPRINGFIELD, Pa. and SALEM, Ky., Aug. 11, 2026 /PRNewswire-PRWeb/ -- As Financial Advisor to Livingston Hospital ("Livingston") a 25-bed Critical Access Hospital, InnoVative Capital, LLC, announces the successful execution of a $78.8 million financing, which incorporates a $73.8 million, 27-month senior secured non-revolving construction draw-down loan (the "Construction Loan") from Old National Bank and a $5 million capital contribution from Livingston. All proceeds will be used to fund Livingston's long-needed hospital modernization project (the "Project"). The Construction Loan is secured by a take-out long-term funding commitment from the U.S. Department of Agriculture ("USDA") through the issuance of its 35-year Community Facility Direct Loan at a capped maximum fixed rate of 4.875%. This rate may be reset downward at any time prior to completion of the Project and occupancy of the new facility, based on any current quarterly-posted USDA Direct Loan rate.
Livingston Hospital is in the city of Salem, Kentucky, 34 miles northeast of the city of Paducah and 70 miles southeast of Evansville, Indiana. The hospital has continuously served the three-county area of Livingston, Crittenden, and Lyon since 1954. It has been thirty-five years since the hospital went through a renovation project, which was the only substantive change at Livingston over the past seventy-two years. This major modernization project adds an additional 56,000 sq. ft. and renovates 5,400 sq. ft.. In all, the Project includes a new Patient Nursing Unit, new Emergency Services, new Imaging, and new Surgery incorporating central sterile and stating/recovery support, as well as renovating Outpatient Oncology and expanding its pharmacy department.
Prior to the financing, two significant events occurred: Livingston Hospital's 2022 affiliation with Deaconess Health System, based in Evansville, Indiana, and the inception of Kentucky's Hospital Rate Improvement Program ("HRIP") in January 2024. As a result, Livingston experienced immediate financial performance improvements that led their Board and senior management to move ahead with an ambitious and much-needed capital and project planning and development process that was to result in the procurement of affordable long-term financing and design/construction of a transformative new hospital.
Livingston Hospital CEO, Shane Whittington, spoke of USDA's commitment to Livingston as "powerful to rural healthcare at a time when many hospitals are struggling. With this project, we are protecting access to high-quality care close to home – and expanding the depth and convenience of the services our community need."
First District of Kentucky Congressman James Comer mentioned, "This is a massive project. This would be a big project in Louisville. This would be a big project in Lexington. This is a significant investment in this community." USDA Kentucky State Director, Travis Burton highlighted Whittington's leadership in the process and the hospital board's aggressive, determined work to get the funding over the finish line.
Alan P. Richman, President and CEO of InnoVative Capital, stated, "This landmark transaction was only accomplished with the superb executive leadership and board management of Livingston. The impact of this project will be felt throughout the County and surrounding area. Their soon-to-be modernized facility will not only be able to deliver enhanced services but also an opportunity for greater physician recruitment. Livingston has a bright future." When discussing the financing, Mr. Richman added, "The availability of a 35-year fixed rate loan with a cap rate of 4.875% from USDA's Community Facility Direct Loan program is welcome in what recently has become a very turbulent and unfriendly borrowing environment for rural hospitals. The USDA permanent loan commitment was instrumental in procuring construction financing from Old National Bank, and being a 100% USDA Direct Loan financing, it affords the hospital the lowest current overall long-term rate on the market."
About InnoVative Capital
Founded in 2000, InnoVative Capital maintains a national hospital financing and advisory practice as a USDA Financial Advisor, SEC-approved Municipal Advisor, FHA mortgage lender, and hospital turnaround consultant with a specialty focus on serving rural hospitals and their communities. InnoVative Capital plans, develops, and executes financings to modernize healthcare delivery through transformative capital projects. Over the past 12 months, InnoVative Capital has closed over $160 million in USDA rural hospital transactions.
About Livingston Hospital
Livingston Hospital operates a 25-bed acute-care, critical-access hospital located in Salem, Kentucky, that holds a Level IV Trauma Center certification. In addition to Salem, Livingston has clinics and offices in Grand Rivers, Eddyville, and Marion, serving the residents of Livingston, Crittenden, and Lyon counties.
Media Contact
Alan Richman, InnoVative Capital, LLC, 1 6105432490 101, [email protected], www.innovativecapital.com
SOURCE InnoVative Capital, LLC
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