Published February 09, 2011
UnitedHealth Group (NYSE: UNH) invested $3.9 million in La Clínica de La Raza to help the organization deliver quality health care services to Contra Costa County residents.
UnitedHealth Group purchased La Clínica’s tax-exempt revenue bonds through the California Health Care Investment Program, which gives California health care entities access to capital at rates that are highly competitive with those of conventional financing. Given the dollar size of the bond issue, the clinic also qualified for a cost of issuance subsidy of about $707,000, which covered nearly the entire amount of the organization’s bond issuance costs. The cost of issuance was subsidized by UnitedHealth Group’s Capital Access Small Issuance Program.
UnitedHealth Group’s California Health Care Investment Program is a 20-year, $200 million commitment to health care organizations that provide services to underserved, low-income and underinsured communities and populations throughout the Golden State.
La Clínica will use the proceeds to renovate an office building in Concord into a nearly 17,000-square-foot medical and dental facility, and move the nonprofit’s La Clínica Monument clinic from its current location in nearby Pleasant Hill to the new Concord facility. The new space will enable La Clínica to nearly triple its patient capacity. It expects to provide health care services to 11,000 people in its first year.
La Clínica first opened its doors in Oakland in 1971 and has since expanded to 25 clinics across Northern California. La Clínica Monument clinic opened in 2003, offering primary care along with dental, health education, case management, optical, pharmacy and behavioral health services.
“We are fortunate to have UnitedHealth Group’s investment in our clinic and our community. The Monument clinic expansion will allow us to provide health care services available to our current patients and also extend health care services to thousands of new individuals seeking health care,” said Jane García, La Clínica’s CEO. “We are preparing to serve the growing number of people now eligible to obtain health coverage under the new health reform provisions. This goes a long way toward that goal.”
“UnitedHealth Group’s investment in La Clínica is welcome news for our community,” said Assemblywoman Susan Bonilla, D-Concord. “These funds will result in helping to meet the crucial need to improve our health care safety net in Contra Costa County.”
“UnitedHealth Group is committed to investing in California’s health care infrastructure to help ensure that all Californians have access to quality care,” said Steve Nelson, West Region CEO, UnitedHealthcare. “We are pleased to be able to help La Clínica meet its community’s health care needs. We believe it is essential that medically underserved residents in Contra Costa County continue to have this important health care resource in their community.”
UnitedHealth Group’s UnitedHealthcare business offers health benefits, including commercial and Medicare health plans, to more than 2.8 million Californians, and partners with about 50,000 physicians across the state.
About UnitedHealth Group
UnitedHealth Group is a diversified health and well-being company dedicated to helping people live healthier lives and making health care work better. With headquarters in Minnetonka, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, OptumHealth, Ingenix and Prescription Solutions. Through its family of businesses, UnitedHealth Group serves more than 75 million people worldwide. Visit www.unitedhealthgroup.com for more information.