Universal Health Services, Inc. (UHS), a leading healthcare provider, identified a critical need for emergency medical services in Pharr, TX, a rapidly growing city in the Rio Grande Valley. Despite its growth, Pharr stands as the largest city in the region without a hospital or a freestanding emergency department (FED) within its city limits. Lack of access to emergency care left the predominantly low-income population at significant disadvantage in times of medical emergencies. UHS aimed to address this gap by constructing a 10,884 sq. ft. FED, equipped to handle a wide range of medical emergencies and provide essential outpatient services. The project also sought to alleviate the area’s designation as a Health Professional Shortage Area by attracting healthcare professionals to the community.

To bring this much-needed facility to life, UHS sought $15.5 million in NMTC allocation from TxLIC and TransPecos. The financing was crucial in bridging a gap in the project’s capital stack, which could not be covered by traditional financing and equity alone. Without the NMTC, UHS would have faced the prospect of scaling back the project, which would have compromised the facility’s ability to meet the community’s healthcare needs. The NMTC allowed UHS to move forward with the full scope of the project, ensuring that the FED would be fully equipped and staffed to provide high-quality emergency care.

The construction of the Pharr FED has had a profound impact on the community. The facility now serves approximately 19,976 patients annually, providing critical emergency care to residents who previously had limited access to such services. The project serves all individuals regardless of their ability to pay, and 62% of the patients served by the project are enrolled in Medicaid or are completely uninsured. The FED has also created 34 permanent FTE jobs, with an average wage of $36.93 per hour-more than double the living wage for the area. The jobs include positions accessible to individuals with a high school education, ensuring that the economic benefits extend to the broader community. The project also generated 150 construction jobs.

The Pharr FED has become a cornerstone of the community, not only improving access to emergency healthcare but also fostering economic development in a medically underserved area.