Haskell Memorial Hospital in Haskell, Texas, has a history that dates to 1939 when its doors first opened, but keeping those doors open became a challenge last year due to funding cuts and lower insurance reimbursements, said Michelle Stevens, CEO of the Haskell County Hospital District.

The Federal Home Loan Bank of Dallas (FHLB Dallas) Economic Development Program (EDP) was able to help. "The funds we received helped our hospital recover from an unexpected loss of $2 million in government funding,” Ms. Stevens said. 

Haskell Memorial Hospital treats critical care patients so that they don’t have to drive nearly an hour to the next nearest hospital — a time and distance that could be a life-or-death proposition for some, she said.  It’s also one of the city’s largest employers with 80 full-time workers.

FHLB Dallas member bank First State Bank of Abernathy helped three struggling hospitals keep their doors open with EDP loans last year, including Haskell Memorial Hospital.

The EDP offers FHLB Dallas’ members favorably priced advances (loans) to finance a broad range of projects and initiatives, including small businesses, hospitals, nursing homes and social service facilities, commercial and manufacturing initiatives, infrastructure and public facilities. EDP advances are only available to FHLB Dallas member institutions which, in turn, provide loans to their customers.

To qualify, the entity receiving an EDP loan must create or retain jobs and be located in an economically disadvantaged area or serve a disadvantaged population to qualify. More details on qualifications are available at fhlb.com.

“It’s beneficial for our customer and the bank because we receive an affordable, competitive interest rate and can lend money to struggling hospitals at a rate that they can afford,” said Jentri Turner, cashier at First State Bank. “Maybe they aren’t doing brain surgeries, but they are dealing with rattlesnake bites or moms in labor or heart attacks. We are proud to be lending to these hospitals. In a sense, we are helping save lives.”

Denise Turner, director and CFO at First State Bank, said the EDP loans were used by the hospitals for operational expenses and to replace outdated equipment. “We had to try to figure out how we could help them because it was just extremely important and dire for our communities,” she said. “We definitely will use the EDP again.”   

For First State Bank, the funding also produced goodwill, with community residents thanking the bank for its help in keeping rural hospitals healthy and operational. 

“We have seen these three hospitals really turn things around to benefit their communities — the communities we so proudly serve,” Jentri Turner said.