Who
- Northern Sierra Section hospitals
What
With long-anticipated construction projects — some of which are steps toward 2030’s seismic requirements — breaking ground over the past six months, hospitals are discovering new challenges in staying on time and under budget. Under 2021’s Build America Buy America Act (BABA), hospitals that receive federal loans or grants for construction must use materials produced in the United States. This restriction is causing delays, limiting options for the materials that can be used, and significantly adding to project costs.
For decades, hospital capital projects in the Northern Sierra section have often been funded by loans or grants from the United States Department of Agriculture Rural Development build program, which offers low-interest loans with favorable terms. While waivers of BABA requirements are available, a waiver must be granted for each individual item and a single project may require numerous waivers — each of which takes hours to complete and has no guarantee of approval. Rulings are expected to take four to six months.
Takeaway/Next Steps
The group will continue to explore this potential partnership and plans to solicit additional employer input; it will convene again in early August.
Contact
RVP T Abraham at tabraham@hospitalcouncil.org